Friday, February 18, 2011
IRS Issued Reminder About Key Facts Pertaining To Child Tax Credit
IRS has issued a reminder about key facts pertaining to the Child Tax Credit. (IRS Tax Tip 2011-29) As described by the agency, the credit may be worth as much as $1,000 per qualifying child under the age of 17 depending upon a taxpayer's income. A qualifying child for this credit is someone who meets the qualifying criteOf six tests: age, relationship, support, dependent, citizenship, and residence. IRS expands on these points in the document. The credit is limited if a taxpayer's modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on filing status. In addition, the Child Tax Credit “is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe,” IRS said. If the amount of a taxpayer's Child Tax Credit is greater than the amount of income tax owed, a taxpayer may be able to claim the Additional Child Tax Credit, IRS noted. IRS Tax Tip 2011-29 is located at http://www.irs.gov/newsroom/article/0,,id=106182,00.html.