Tax Credits for Children

1040 Form Clare County, MI

Beginning with Tax Year 2018, you may able to claim the Child Tax Credit (CTC) if you have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Up to $1,400 of the credit can be refundable for each qualifying child as the Additional Child Tax Credit (ACTC). A refundable tax credit may give you a refund even if you don’t owe any tax.

Your qualifying child must have a Social Security Number issued by the Social Security Administration before the due date of your tax return (including extensions) to be claimed as a qualifying child for the Child Tax Credit or Additional Child Tax Credit.
Dependents who can’t be claimed for the Child Tax Credit may still qualify you for the Credit for Other Dependents (ODC). This is a non-refundable tax credit of up to $500 per qualifying person. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien. The Social Security Number rule does not have to be met to be eligible for the ODC.

Some changes for 2018TY – More families may be eligible for the Child Tax Credit or the Credit for Other Dependents. Both credits begin to phase out at $200,000 of modified adjusted gross income ($400,000 for married couples filing jointly), compared with 2017 levels of $75,000 for single taxpayers and $110,000 for married couples filing jointly. Also, the earned income threshold for claiming the ACTC has decreased from $3,000 to $2,500. This means that unless your income level is at a certain point you may not receive the total $2000 credit.

An important rule for the CTC/ACTC is time the child has been a member of the household. However, there are some exceptions: A child is considered to have lived with you for more than half of 2018 if the child was born or died in 2018 and your home was this child’s home for more than half the time he or she was alive. There also are exceptions for kidnapped children and children of divorced or separated parents. If any of these may apply to you we can help you sort through the paperwork.

To receive the CTC/ACTC you are required to submit a Schedule 8812 Additional Child Tax Credit. Along with the Schedule 8812 there are worksheets that are not filed with your tax return to determine if you are eligible and how much of the CTC/ODC can be applied.

The CTC/ACTC and ODC can be claimed for more than 3 children, unlike the Earned Income Credit. If you want to know more about how you can receive these credits for your tax situation please give us a call at (989) 859-0346 or email us at