{"id":881,"date":"2013-02-22T12:37:43","date_gmt":"2013-02-22T07:07:43","guid":{"rendered":"http:\/\/www.nsglobal.com\/blog\/?p=881"},"modified":"2013-03-13T16:23:06","modified_gmt":"2013-03-13T10:53:06","slug":"save-money-with-the-child-tax-credit","status":"publish","type":"post","link":"https:\/\/www.nsglobal.com\/blog\/?p=881","title":{"rendered":"Save Money with the Child Tax Credit"},"content":{"rendered":"

If you have a child under age 17, the Child Tax Credit may save you money at tax-time. Here are some facts the IRS wants you to know about the credit.<\/p>\n

1.\u00a0 Amount:<\/strong>\u00a0 The non-refundable Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child you claim on your return.<\/p>\n

2.\u00a0 Qualifications:<\/strong>\u00a0 For this credit, a qualifying child must pass seven tests:<\/p>\n

a.\u00a0 Age test:<\/strong>\u00a0 The child must have been under age 17 at the end of 2012.<\/p>\n

b.\u00a0 Relationship test:<\/strong>\u00a0The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. A child may also be a descendant of any of these individuals, including your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.<\/p>\n

c.\u00a0 Support test:\u00a0<\/strong>\u00a0The child must not have provided more than half of their own support for the year.<\/p>\n

d.\u00a0 Dependent test:\u00a0<\/strong>\u00a0You must claim the child as a dependent on your federal tax return.<\/p>\n

e.\u00a0 Joint return test:\u00a0\u00a0<\/strong>The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.<\/p>\n

f.\u00a0 Citizenship test:\u00a0\u00a0<\/strong>The child must be aU.S. citizen,U.S. national or U.S. resident alien.<\/p>\n

g.\u00a0 Residence test:\u00a0<\/strong>\u00a0In most cases, the child must have lived with you for more than half of 2012.<\/p>\n

3.\u00a0 Limitations:\u00a0<\/strong>\u00a0The Child Tax Credit is subject to income limitations, and may be reduced or eliminated depending on your filing status and income.<\/p>\n

4.\u00a0 Additional Child Tax Credit:\u00a0<\/strong>\u00a0If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the refundable Additional Child Tax Credit.<\/p>\n

5.\u00a0 Schedule 8812:<\/strong>\u00a0\u00a0If you qualify to claim the Child Tax Credit make sure to check whether you must complete and attach the new Schedule 8812, Child Tax Credit, with your return. If you qualify to claim the Additional Child Tax Credit, you\u00a0must<\/strong>\u00a0complete and attach Schedule 8812.<\/p>\n

IRS Publication 972<\/a>, Child Tax Credit, can provide you with more details.<\/p>\n

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