You are ready to file this year’s tax return and have no idea where to begin. You have dependents and know there is a child tax credit that comes from claiming dependents on your tax return. Do you know the five general tests that must be met for claiming a tax credit for a dependent?

  • Age
  • Relationship
  • Residence
  • Support
  • Married Child

To qualify for the $2,000 child tax credit the child must be under the age of 17. The child must be your child, stepchild, foster child, sibling, stepsibling or a descendant of one. The child must live in your home for more than half the year and the child must prove less than 50% of their own support. If the child is married they must not file a joint return with their spouse. In addition, a social security number is required. If a child is claimed by two or more taxpayers there is a protocol that determines the taxpayer that can claim that child.

If a child is not eligible for the child tax credit, they still may qualify for the $500 Other Dependent Credit. The child then must be 16 years or older and bears a relationship to the taxpayer. The individuals gross income must be less than $4,300 for 2020. The individual must be a U.S. citizen and they cannot provide more than 50% of their own support. 

Each person claimed as dependent is required to have a taxpayer identification number. This can be in the form of an individual taxpayer identification number (ITIN), adoption tax identification (ATIN), or a social security number (SSN).

Finding yourself confused on where to begin with your taxes and how to handle child tax credits? We are here to be your resource. Contact us today!

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