• Lila & Associates LLC

Child Tax Credit Requirements- Tax Returns

The child tax credit is worth up to 1000 for each qualifying child. This credit can be both a nonrefundable and a refundable credit. The refundable portion of the child tax credit is called the additional child tax credit. You and/or your child must pass all seven to claim this tax credit.

How to determine if you qualify for EIC: If you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income.


1. Age Test

To qualify, a child must have been under age 17 (i.e., 16 years old or younger) at the end of the tax year for which you claim the credit.

2. Relationship Test

The child must be your own child, a stepchild, or a foster child placed with you by a court or authorized agency. An adopted child is always treated as your own child. ("An adopted child" includes a child lawfully placed with you for legal adoption, even if that adoption is not final by the end of the tax year.)You can also claim your brother or sister, stepbrother, stepsister.

3. Support Test

To qualify, the child cannot have provided more than half of his or her own financial support during the tax year.

4. Dependent Test

The child must be claimed as your dependent on your federal income tax retur

5. Citizenship Test

The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.


6. Residence Test

The child must have lived with you for more than half of the tax year for which you claim the credit. There are important exceptions, however: A child who was born (or died) during the tax year is considered to have lived with you for the entire year.

7. Family Income Test

The child tax credit is reduced if your modified adjusted gross income is above certain amounts, which are determined by your tax-filing status. In 2017, the phase out threshold is $55,000 for married couples filing separately; $75,000 for single, head of household, and qualifying widow or widower filers; and $110,000 for married couples filing jointly. For each $1,000 of income above the threshold, your available child tax credit is reduced by $50.


The Additional Child Tax Credit

The child tax credit itself is non-refundable. That means that if the amount of credit you’re eligible for is greater than the amount you owe the IRS, you won’t get the difference back in your tax refund. To get that money, you can file for what’s called the Additional Child Tax Credit, assuming you’re eligible.

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