- Days left

Tax Tips: The 2007 Child Tax Credit

bundled baby tax creditTaxpayers can receive a credit toward their taxes for each qualifying child. Tax credits are very advantageous to taxpayers because they represent a direct reduction in the tax dollars to be paid. For 2007, the maximum credit per child is $1,000. A credit is only given for a qualifying child, and in order to qualify, the child must:
  • Be under age 17 at the end of 2007
  • Be your son, daughter, stepchild, foster child, brother, stepbrother, sister, stepsister, or the child of anyone on this list
  • Receive over half of their support from you
  • Live with you for more than half of 2007
  • Be a U.S. citizen, a U.S. national, or a U.S. resident alien.
All of the above requirements must be fulfilled in order for you to potentially claim the child tax credit on your taxes. The full amount of the credit is $1,000 per child, but it is reduced for married couples with adjusted gross income over $110,000 or single people with adjusted gross income over $55,000. The amount of the reduction in the credit depends upon your income.

There are special rules if a child qualifies for more than one person, as in the case of a divorce. There are also special rules for children who don't live with you because of special circumstances such as medical care or living in a juvenile detention facility. See IRS Publication 972 for more details on the Child Tax Credit and for instructions on filing.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »

TurboTax Articles

5 Hidden Ways to Boost Your Tax Refund

Most of us are looking for ways to pay no more than we owe in taxes, or even boost our tax refunds. Here are five strategies that go beyond the obvious with tried-and-true ways to reduce your tax liability.

What, Me Worry? Last Minute Taxes

According to the Internal Revenue Service, 20-25% of all Americans wait until the last two weeks before the deadline to prepare their tax returns. At that late date, there are only two things you can do: File your taxes pronto, or request a tax extension.

Can't File by the Deadline? Top 3 Reasons to File a Tax Extension

The Internal Revenue Service allows taxpayers to file for a 6-month extension if they need more time to prepare their tax return. You can obtain a tax extension for any reason; the IRS grants them automatically as long as you complete the proper form on time. Check your state tax laws; some states accept IRS extensions while others require you to file a separate state extension form.

Add a Comment

*0 / 3000 Character Maximum