By H&R Block’s Leigh Mutert, CPA and hrblock.com Community Manager
These child tax credits and deductions can mean a tax refund for you!
There are many money-saving tax credits and deductions that can reduce the tax burden on families with children. The Child Tax Credit, Child Care Credit and the Earned Income Credit can all mean tax savings for families with one or more children. Remember, a tax credit is a dollar-for-dollar reduction of the taxes you owe.
Child Tax Credit
The maximum Child Tax Credit is $1,000 each qualifying child under 17. Because this is a partially refundable tax credit, even taxpayers who do not owe taxes are eligible if they have earned at least $3,000 in 2010. If you have four children, the credit can cut your tax bill up to $4,000.
Income Requirements: When income exceeds $110,000 (married filing jointly), $55,000 (married filing sep.) and $75,000 (all others) the child tax credit begins to phase out. If parents are divorced or separated, the parent who claims the child as a dependent is eligible to claim the child tax credit. This is true even if the parent’s filing status is married filing separately. The Child Tax Credit Table can help you determine if you are eligible for the full credit amount of $1,000.
