qualifying child

As you fill out your federal income tax return, even before you report your income, the IRS asks you to list your personal exemptions. It's important not to skip this step -- exemptions reduce your taxable income. For 2009, the personal income tax exemption amount is $3,650. That's per person, not...

Taxpayers 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...