Tax Tips for Child Tax Credit

Generally, you may deduct $500 for each child under the age of 17 whom you also claim as a dependent.

The IRS defines “child” as your child by birth, step-child, eligible foster-child, or other descendant. Your qualifying child must have been under the age of 17 at the close of the tax year. For example, for the 2000 tax year, your child must have been under the age of 17 as of December 31, 1999. For the year 1999, the deduction is $500.

Taxpayers with high incomes may not qualify for the credit. Married taxpayers, who file jointly, and who have an annual adjusted gross income of more than $110,000, lose $50 of the credit for every $1,000 above $110,000. Likewise, single taxpayers who have an annual adjusted gross income of $75,000 lose $50 for every $1,000 above $75,000.

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