age limit to claim child tax credit
The IRS can’t help you find a summertime day care provider, but it can help pay some of the costs, thanks to the child and dependent care tax credit. And day camp, a popular summer activity, can count toward that tax credit claim. The tax break’s name offers 2 important pieces of information. The dependent-care credit is not refundable, meaning it can only take your tax bill to zero. Any excess credit is not usable. For example, if you claim a $1,050 maximum credit for the care of one child and owe $750, the IRS will use your credit to wipe out your tax bill, but you won’t get the extra $300 as a refund. Defining dependents Since the girl lived with both of you for more than half the year and neither parent exceeds the credit’s earning limits, you must decide who will claim the larger credit amount that is available when a child is involved. Child and Dependent Care Credit: The individual being claimed as a dependent must meet the four basic tests, but there is a modification when it comes to the age test. For the child and dependent care credit, the dependent must be under age 13 unless the individual is permanently or totally disabled. Child Tax Credit: A child is your qualifying child for the child tax credit if he or she meets the four basic tests except for the age test: The child must be under age 17 and must be claimed as your dependent. Also, a permanently disabled child, regardless of age, can be claimed in connection with the earned income credit. The relationship test is met if the child is your son or daughter (either by birth or adopted), stepchild or grandchild. These four tests are the basic tests for a qualifying child, but, depending on the tax credit you're trying to claim, there are additional tests that must be met: Dependency Exemption and Head-of-Household Filing Status: The individual being claimed as a dependent must meet the four basic tests in addition to two other ones: If the company pays you $1,000 for child-care costs, you must reduce your credit amount by that payment, so a $3,000 limit now becomes $2,000 to offset the company payments. In the case of a spending account, if you paid $10,000 for a nursery school to look after your 2 children while you were at work, $6,000 is the maximum allowable credit amount. All taxpayers claiming credits based on the children they are raising must take into account each child’s age, the child’s relationship to the taxpayer, where the child lived during the tax year and the child’s tax-filing circumstances. In most cases, the child must be younger than 19 at the end of the tax year in which the EITC is claimed. For example, if you claim a $1,050 maximum credit for the care of one child and owe $750, the IRS will use your credit to wipe out your tax bill, but you won’t get the extra $300 as a refund. Defining dependents. If you pay for child care, you can claim this credit to help offset some of your costs as long as your child meets IRS guidelines. The Age Test: A qualifying child has to be either under the age of 19 or both under the age of 24 and a full-time student for at least five months of the year. There is no age limit for someone who is permanently and totally disabled.
The child must be under age 17 to claim child tax credit.