Fed Tax Deductions Per Child
The U.S federal government allows tax deduction on children. Individuals and married couples who have children can now claim tax credits up to $1,000 per child. This credit is on their annual tax returns. There are certain conditions about the type of relation you share with the child that have to be fulfilled in order to avail this tax credit. |
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Parents have to be directly related to the child. This means that the child should be your son or stepson or you should hold the legal guardian of the child. In addition, there are also other criteria that have to be fulfilled.
It should also be noted that the child should be younger than you in case you are claiming the tax credit. The child must be under the age of 17 in the year for which you filing the tax return. The child must have a fixed residency for at lest 6 months of time span. The child must be supported financially by you, or you should be paying at least half of the money to take care of the child's needs. The child must be a legal US citizen.
There can be certain exceptions due to divorce but they are briefly explained in Internal Revenue Publication 501. The 1000 dollars credit is not for everyone. The credit depends on the income limits of the legal guardian of the child. Taxes owed to the federal government will be reduced with incomes accordingly. If you are married and filling jointly, your income should be below $110,000. If you are single and have a child for whom you want to avail the tax credit, you income should be below $75,000. If you are married and you are filling separately, then your income should be below $55,000. For every 1000 dollars, 50 dollars is reduced. These are some basic information you should know before filling for child tax credit.
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