Qualifying Child

Qualifying for the child tax credit has five requirements. The child must be a daughter, son, stepchild, sister, brother, stepsister or stepbrother, grandchild, niece or nephew, under the age of 17 for the filing year. The child must not have provided more than half her own support for the qualifying year and must have lived with the filer more than half of the qualifying year. She must also be a citizen of the United States, a U.S. national or a U.S. resident alien.

Exceptions

An adopted child who does not meet the final requirement as set forth by the IRS will still qualify for the child tax credit if he lived with the filer for the entire qualifying year. There are also exceptions for children who died during the qualifying year.

How it Works

The child tax credit is used to lower the amount of tax owed. Therefore, if there is no tax to reduce, the credit cannot be taken. Eligibility is determined by filing status and adjusted gross income.

Other Credits

According to the IRS, the child tax credit may be claimed in addition to the earned income credit as well as the credit for child- and dependent-care expenses.

Alternative Forms

If the qualifying child is not a dependent, yet meets all the other eligible rules, form 8901 must be completed and returned with the completed income taxes.

Source:

IRS