2009 $1000 Child Tax Credit - IRS dependent tax credit - Actual Tax credit, not a Tax deduction
The child tax credit which allowed a maximum tax credit of $1000 for a taxpayer having a child (or children) less than the age of 17, has been extended through 2009. Remember this is a tax credit and not a tax deduction, i.e. you subtract the child tax credit directly from the taxes you owe to the IRS and not the taxable income. This tax credit is in addition to the Child Care Tax credit or Dependant Care Tax credit and also in addition to Earned Income Tax Credit.
How does Child Tax credit work? Dependant or Child Tax Credit details.To qualify for the $1000 child tax credit you need to fit the following criterion (from 2008 IRS webpage).
- Income Limits, Income Cap: If you are married and filing jointly, your total gross annual income must be at most $110,000. If you are married and filing separately your income must be upto $55,000. For single head of household or qualified widow/widower the income cap to recieve the Dependant/Child Tax credit is $75,000.
- Qualifying child: The child must be son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew). Also the child must have lived with you for more than half of the year (some exceptions allowed) and must be a U.S. citizen, U.S. national or a U.S. resident alien.
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