$1000 CHILD TAX CREDIT details explained - Tax deduction 2009

$1000 Child Tax credit 2009

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).
  1. 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.
  2. 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.

Other Tax Breaks, Tax Credits, Tax Rebates in 2009 Economic Stimulus Package that maybe of interest to you

  • 2009 Obama Stimulus Package details explained.
  • New Car Purchase Auto Stimulus details explained- Excise and Sales Tax deduction for new purchase of new vehicles.
  • $8000 First Time Home Buyer Tax Credit details- 2009 Housing Stimulus Bill in Economic Plan proposed by Obama.
  • $800 Making work pay tax credit stimulus- details explained ($400 working tax credit for individuals and $800 tax credit for married taxpayers).
  • $250 Social Security Stimulus Check in 2009 Economic Stimulus Package.
  • 2009 Cobra Stimulus Package 65% Reduction in Cobra Health Insurance Premium for qualifying individuals.
  • 2009 Stimulus Checks? Economic Stimulus Payment
  • $1000 Child Tax Credit, Dependent Tax Credit 2009 extension.

  • Feb 20, 2009


    Anonymous February 20, 2009 at 2:41 AM  

    Can you give more details on which forms to fill in order to claim 1000 child tax credit?

    iinvestor February 20, 2009 at 2:42 AM  

    The following quote is directly from the IRS website on "CLaiming the $1000 Child Tax credit" (although it is mentioned for 2008), Child credit has been extended through 2009 also.
    To claim the child tax credit, you must file Form 1040, Form 1040A, or Form 1040NR. You cannot claim the child tax credit on Form 1040EZ or Form 1040NR-EZ. You must provide the name and identification number (usually a social security number) on your tax return (or Form 8901) for each qualifying child. "

    Anonymous February 20, 2009 at 2:43 AM  

    how do you know about the extension of child credit to 2009? can you give a reference/link?

    iinvestor February 20, 2009 at 2:44 AM  

    Actually i was not able to directly find a reference about extension of child tax credit on IRS website. However the following URL mentions that the child credit or dependent credit has been extended to 2009.

    Mike February 20, 2009 at 2:54 AM  

    What is the difference between child credit, child tax refund and child tax deduction?

    iinvestor February 20, 2009 at 2:55 AM  

    they all just mean $1000 Child credit

    M.L. February 20, 2009 at 3:09 AM  

    You mention that in order to qualify for 1000 child credit, some exceptions are allowed if child is not staying with me. can you give me details?

    iinvestor February 20, 2009 at 3:11 AM  

    @M.H. You can claim the 1000 child credit even if the child has not been staying with you for half a year in the following case : (directly from 2008 IRS website for child credit, i believe the conditions for 2009 child credit are the same).
    Exceptions to time lived with you. A child is considered to have lived with you for all of 2008 if the child was born or died in 2008 and your home was this child's home for the entire time he or she was alive. Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you.

    iinvestor February 21, 2009 at 1:47 AM  

    For your information and convenience I have posted information above from IRS webpage about 1000 child credit or dependent tax credit. Remember that the information was for child tax credit in 2008. I believe it should be same for 2009 . cheers!

    Anonymous March 3, 2009 at 6:55 PM  

    Is there any hope of being able to claim this credit after child turns 17 and is not working and is a student?

    marge March 14, 2009 at 12:58 AM  

    What year was Child Tax Credit initiated?

    GM April 16, 2009 at 10:18 AM  

    I have 4 children under the age of 12, but on my 1040 return, it only allowed me to deduct/claim the tax credit on two out of my 4 children?

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