- The Child Tax Credit can save up to $1,000 per year for each qualifying child.
- To merit the credit for 2016, a child must be 16 or younger at the end of this year.
- You must claim the child as a dependent on your federal tax return.
- To get the full $1,000 tax savings, your modified adjusted gross income (MAGI) must be less than $110,000 on a joint return, or $55,000 for married taxpayers filing a separate return.
- For all other taxpayers, this MAGI number is $75,000. The credit phases out for taxpayers with MAGIs higher than the amount for their filing status. Partial credits are allowed with somewhat higher MAGI.
- Typically, MAGI for this credit will be the same as AGI.
The American Institute of Certified Public Accountants has written the article published here and given us permission to reprint it.
For more information on the Child Tax Credit, please contact Joe Musumeci at 443-725-5395.