As a parent, you could be eligible to receive many child-related tax benefits. Here are 5 factors that could affect the way you prepare your tax return.
1. You Can Claim a Dependent
A child must meet 5 criteria to qualify as your dependent. The child:
- Must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of them
- Must be younger than 17
- Could not have provided more than half of his or her own support
- Must live with you more than half of the year, and
- Must be a U.S. citizen.
2. You Could Qualify for Several Credits
You may qualify for the Child Tax Credit, Earned Income Credit (EIC) and Child Care Credit. If you meet the requirements for any of these, you could be eligible for a larger refund.
Child Tax Credit
You may be able to get as much as a $1,000 credit per child. This credit is available regardless of your filing status. However, your credit is reduced if your modified adjusted gross income is:
- $110,000 or above if Married Filing Jointly,
- $75,000 if Single, Head of Household, or Qualifying Widow(er), or
- $55,000 if Married Filing Separately.