The Child Tax Credit
The Child Tax Credit is one of the most relied on credits every year. It’s been extended until 2012 and allows you to claim a credit worth up to $1,000 for each qualifying child that you can claim as a dependent.
A qualifying child:
- Must be 16 years old or younger
- Is Your daughter, son, step child, foster child, brother, sister, step sibling, niece, nephew, grandchild, or adopted child
- Cannot provide more than 50% of their own material support
- Must be a legal dependent of the tax payer Must be a U.S. citizen, national, or residential alien
- Must have lived with the tax filer for over half of the tax year
Aside from those basic parameters there is a phase-out for those making a certain amount each year.