What Do You Need to Know About the Child Tax Credit?
The New Child Tax Credit. Under pre-TCJA law, the CTC was worth up to $1,000 per qualifying child, was refundable for taxpayers with earned income of at least $3,000, and phased out (decreased) for taxpayers with AGI above $75,000 ($110,000 for joint filers). These rules remain in effect for 2017 tax returns (filed in 2018).
When does the Child Tax Credit phase out?
The credit begins to phase out at $200,000 of modified adjusted gross income. This amount is $400,000 for married couples filing jointly. Taxpayers can use the worksheet on page 6 of Publication 972, Child Tax Credit PDF, to determine if they can claim this credit.
Do you have to claim your child as dependent on your tax return?
The taxpayer must claim the child as their dependent on their federal tax return. The child cannot file a tax return for the same year with the status married filing jointly, unless the only reason they are filing is to claim a refund.
