|Tax Topic #606
||2006 Tax Year
Child Tax Credits
You may be able to claim a child tax credit if you have a qualifying child.
A qualifying child is a child who:
- Is a United States citizen, a United States resident, or a national of the United
- Is under age 17 at the end of the calendar year in which your tax year begins,
- Is your son, daughter, stepson, stepdaughter, legally adopted child, or a child
placed with you for legal adoption, brother, sister, stepbrother, stepsister, foster
child placed with you by an authorized placement agency or by a court order, or a
descendant of any such person, and who
- Shares with you the same principal place of abode for more than one-half of the
tax year, or is treated as your qualifying child under the special rule for parents
who are divorced, separated, or living apart. For more information, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information.
The credit is limited if your modified adjusted gross income is above a certain
amount. The amount at which this phase-out begins depends on your filing status. You
can find the phase-out range for your filing status in the Publication 972, Child
In general, the child tax credit is limited also by the sum of your income tax
liability and any alternative minimum tax liability. For example, if the amount of
the credit is $600, but the amount of your income tax is $500, the credit ordinarily
will be limited to $500. However, there are two exceptions to this general rule. First,
if the amount of your child tax credit is greater than the amount of your income taxes,
you may be able to claim an "additional" tax child tax credit if your earned income
exceeds the base amount for the year. Second, if you have three or more qualifying
children, you may be able to claim an additional child tax credit up to the amount
of Social Security taxes you paid during the year, less any earned income credit you
receive. If you qualify under both these exceptions, you receive the greater of the
two additional amounts. You can find the base amount, as well as more information
on qualifying with three or more children in the Publication 972, Child
The total amount of the child tax credit and any additional child tax credit cannot
exceed the maximum amount allowed for the taxable year. You can find the maximum amount
allowed in Publication 972, Child Tax Credit.
Individuals entitled to receive the child tax credit and additional child tax credit
may also be eligible to receive the child and dependent care credit and the earned
Follow your Form 1040 Instructions or Form 1040A Instructions and complete the child tax credit worksheet. Certain taxpayers may also
have to complete worksheets in Publication 972, Child Tax Credit. Use Form 8812 (PDF) to figure the additional child tax credit and attach
it to your return. For more information on the child tax credit, refer to Publication
972, Child Tax Credit.
Previous | Index | Next
You can search for information in the entire Tax Prep Help section, or in the entire site. For a more focused search, put your search word(s) in quotes.
Tax Topic Categories | FAQ Categories | Tax Prep Help Main | Home