Child Tax Credit

Taxpayers with one or more qualifying children may be able to claim a child tax credit of up to $1,000 per qualifying child.  The child tax credit is generally a nonrefundable credit that is limited to regular tax liability plus AMT liability.  However, a portion of the credit is refundable for certain taxpayers. 

Qualifying Child – The same as a dependent child except that the child must be under 17 years old and the child must be a U.S. citizen, resident alien or national.  Exception – If the taxpayer is a U.S. citizen or national and his adopted child live with him all year as a member of his household, the child is deemed to meet the citizen test.  Also, the qualifying child must be claimed as a dependent.

AGI phase-out limitation – The child tax credit is phased out by $50 for each $1,000 of AGI above the beginning phase-out amount.  The AGI where the credit is completely phased out depends on the number of qualifying children.  AGI for the phase-out is modified to include certain amounts excluded from income.

Filing Status	Beginning Phase-Out	1 child	2 children	3 children	4 children	5 children
MFJ	$ 110,000	$ 129,001	$ 149,001	$ 169,001	$ 189,001	$ 209,001
Single, HOH, QW	$ 75,000	$ 94,001	$ 114,001	$ 134,001	$ 154,001	$ 174,001
MFS	$ 55,000	$ 74,001	$ 94,001	$ 114,001	$ 134,001	$ 154,001