Child Tax Credit can save you Money

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ABA Tax Accounting | Tax Services | St. Paul, MN Accounting Firm

Child Tax Credit can save you MoneyFederal, State, Local and International Taxes - 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.·         Amount.  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.·         Qualifications.  For this credit, a qualifying child must pass seven tests:1.    Age test.  The child must have been under age 17 at the end of 2012.2.    Relationship test.  The 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.3.    Support test.  The child must not have provided more than half of their own support for the year.4.    Dependent test.  You must claim the child as a dependent on your federal tax return.5.    Joint return test.  The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.6.    Citizenship test.  The child must be a U.S. citizen, U.S. national or U.S. resident alien.7.    Residence test.  In most cases, the child must have lived with you for more than half of 2012.·         Limitations.  The Child Tax Credit is subject to income limitations, and may be reduced or eliminated depending on your filing status and income.·         Additional Child Tax Credit.  If 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.Considering a Tax Professional? For no obligation free consultation contact us today!ABA Tax AccountingAmare Berhie, Senior Tax Accountantamare@abataxaccounting.com612-282-3200 Toll Free866-936-0430http://www.abataxaccounting.comwww.abatax81.blogspot.comwww.abataxaccounting.wordpress.com