About Child Tax Deductions
The Internal Revenue Services allows a certain amount of tax deductions for qualifying people. If you have one or more children, you may qualify for child tax deductions. These deductions may lower the amount of tax you owe for the tax year.
Reduction Amount
You may be able to claim a reduction of up to $1,000 for each qualifying child. The deductions may reduce the amount of federal taxes you owe the government. Your child or children must be:
- Be at least 17 years of age by the end of the year.
- Live in your household for more than six months out of the year you file your income tax.
- Be a dependent you claim on your federal tax return.
Qualifying Child
A qualifying child should be a child you provide care, shelter and food for six to 12 months. The child or children cannot earn or receive enough income to support themselves. You need to take a relationship test to qualify.
The criteria for the test are:
- Birth child
- Stepchild
- Adopted child
- Brother or sister, includes step siblings
- Foster child
- Grandchild
- Niece or nephew
Citizenship
Your dependents must be citizens of the United States. They should also be United States nationals or resident aliens. You must have proof of this to avoid a potential audit.
Adjusted Gross Income Calculations
The amount of the child tax reductions you may claim depends on your adjusted gross income. However, this amount may differ with each tax year and will be calculated when you file your return.
Additional Credit
If your credit is larger than the federal taxes you owe to the government, you may qualify for additional money. The Additional Child Tax Credit may increase the amount of your expected refund.