The child tax credit may save you money if you have a qualified child. Here are the top five things to know about this credit as it relates to divorce:
- Depending upon your tax filing status and your income you may be eligible for a child tax credit of up to $1000 for each qualifying child you are eligible to claim on your tax return.
- An “Additional Child Tax Credit” is for individuals getting less than the full amount of the child tax credit. This “Additional Child Tax Credit”, may give you a refund even if you do not owe any tax.
- Qualifications by the IRS the child must pass relating to divorce include:
- Child must have been under age 17 at the end of the tax filing year
- The child must be your son, daughter, stepchild, foster child, or your adopted child
- The child must not have provided more than half of their own support for the year
- The child must be a dependent that you claim on your federal tax return
- The child must be a U.S. citizen, a U.S. national or a U.S. resident alien
- In most cases the child must have lived with you for more than half of the tax filing year
- There are income limitations that may reduce or eliminate your ability to qualify for a Child Tax Credit
- See IRS publication 972 for more information on the Child Tax Credit
The child tax credit is one way you may be able to lower your out of pocket tax obligation and in some cases even receive a refund if you do not owe any tax. Be sure to consult with a qualified tax preparer to determine your eligibility to qualify for the child tax credit.Tagged with: divorce • divorce and finances • divorce and taxes • finances • Money and Finances