Child tax credits are allowances provided by the IRS to working families with eligible dependent children. These credits are; the Child Tax Credit and the Additional Child Tax Credit. Family income, child’s age and dependency rules must be met before taking any of these credits.
Income tax return 1040 is one of the forms that may be filed to claim these credits. Other forms for use are 1040A and 1040NR, depending on filing status. Form 1040EZ can’t be used to claim child tax credits. This article discusses claiming child credits on tax form 1040 only. Taxpayers should first find out which form is appropriate for their tax filing status. Forms and schedules to claim child tax credits are included at the end of this page under Additional Resources. Taxpayers who need help filing their taxes can find free assistance, tax advocacy and other resources at the IRS website and for further assistance they also can get help from the New York tax attorneys.
Claiming the Child Tax Credit on Form 1040
Using tax form 1040, claim the Child Tax Credit on line 6c – Dependents, column 4. Provide child’s name, Social Security number and relationship to avoid refund delays.
Make sure all children claimed for the credit are eligible. The main requirements are that:
- A child be younger than 17 years old (not 17 by end of December 31 of the tax year)
- The child lived with you for over six months of the tax year
- The minor is claimed as a dependent child
- The relationship test is met – see IRS requirements
Getting the Additional Child Tax Credit on Form 1040
Use Worksheet 8812 to calculate the additional tax credit. Claim the additional tax credit amount on form 1040 line 65.
This credit is given to taxpayers who have a qualifying child, but can’t get the full $1,000 for the Child Tax Credit. This credit can result in a tax refund even when no taxes are owed or in a tax reduction. First the Child Tax Credit should be calculated and the requirements met, then the additional tax may be claimed.
Claiming the Earned Income Tax Credit with a Dependent Child (EITC)
Complete schedule EIC to find out qualification and calculate the amount of the credit. Claim the EITC on form 1040 line 64a.
The earned income credit rules require taxpayers to have paid income from employment, disability retirement or self-employment. The maximum amount for this credit is $5,666. The maximum income level allowed is $48,362. If a child is used to obtain the credit, the child must be a qualifying dependent. This credit is allowed in addition to the Child Tax Credits.