Child Tax Credit
The child tax credit is a new credit that can reduce your tax. You
may be able to take a credit on your tax return of up to $400 for each
qualifying child.
Qualifying child. A qualifying child
is:
1) Under age 17,
2) A citizen or resident of the United States,
3) Someone you can claim as a dependent, and
4) Your:
a) Son or daughter,
b) Stepson or stepdaughter,
c) Grandchild, or
d) Eligible foster child.
Amount of credit. For 1998, the maximum
credit you can claim is $400 for each qualifying child.
You must reduce the credit if either of the following apply.
- Your modified adjusted gross income is above a certain threshold
amount.
- Your tax liability is less than the credit. However, see Additional
child tax credit, later.
Modified adjusted gross income.
For purposes of the child tax credit, modified adjusted gross income is
generally the amount on line 34 of Form
1040 or line 19 of Form 1040A.
If your modified adjusted gross income is more than the amount shown
in the table below, you must reduce the credit.
| Filing Status |
Threshold Amount |
| Single, head of household, or qualifying widow(er) .... |
$75,000 |
| Married filing jointly .................................................... |
110,000 |
| Married filing separately ............................................. |
55,000 |
Claiming the credit. You must file Form
1040 or Form 1040A to claim the child tax credit. Fill out the child tax
credit worksheet that is included in the form instructions.
You must provide the name and identification number (usually a social
security number) of each qualifying child on your tax return.
Additional child tax credit. You
may be able to take the additional child tax credit if you have three or
more qualifying children. The additional child tax credit may give you
a refund even if you do not owe any tax. To claim the additional credit,
you must complete the child tax credit worksheets in the instructions for
Form 1040 (or Form 1040A) and 8812, Additional Child Tax Credit.
More information. For more information
on the child tax credit, see the Instructions
for Form 1040 or the Instructions
for Form 1040A.
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