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Child Tax Credit

Child tax credit is one of the best tax credit allowed by the IRS. A child tax credit is designed to help parents cope with the rising cost of raising a child. Claiming child tax credit can be done each year until the child is 17. The 2006 child tax credit is $1,000 per child. Each tax payer is entitled for more than one child tax credit.

2006 Child Tax Credit

 

Child Tax Credit

The limit of 2006 child tax credit is $1,000 per child. The child has be to under 17 to qualify for the child tax credit. In the event that you child tax credit exceeds the taxes owed to the IRS, you may be eligible to receive tax refund from the IRS. 



Multiple child tax credits or Additional child tax credit

If you have more than one child, then you can claim additional child tax credit. You can use the child tax credit worksheet to calculate how much child tax credits you will get from the IRS. There are many places you can obtain child tax credit information to help you claim child tax credits.

How to claim child tax credit & eligibility requirements

In order to claim child tax credit and additional child tax credit, you must meet the requirements below:

  • have a qualifying child (to qualify for child tax credit)
  • have income below a minimum amount set by the IRS
Reasons for not claiming child tax credit

There are no reasons for not claiming child tax credit. If you qualify for child tax credit or additional child tax credit, you should definitely claim it.

How to claim child tax credit?

You should use the Child tax credit worksheet to calculate how much child tax credit and additional child tax credit you are entitled to. To claim child tax credits, use the Tax and Credits section of the IRS tax form 1040 or the Tax, Credits and Payments section of the IRS tax form 1040A. If you plan on claiming child tax credit, do not use the IRS tax form 1040EZ. To claim additional child tax credit, use the IRS tax form 8812 for the Additional Child Tax Credit form.

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