Many parents claim the child tax credit to help with the cost of raising children. This year the credit may help even more parents because the income limit for those who qualify has increased to $400,000 for married couples filing jointly and $200,000 for all other filers. Also the credit amount for each qualifying child has increased to $2,000.
This credit applies if the child is younger than 17 at the end of the tax year, you claim the child as a dependent, and the child lived with you for more than half the year. Be sure you have a valid social security number for each qualifying child before you file your tax return. You could get up to $1400 as a refund for each qualifying child, even if you don’t owe any tax.
If you can’t claim your dependent for this credit, you may qualify for a new credit: The Credit for Other Dependents. For this credit you may be able to claim qualifying children who do not have the required social security number, or a qualifying relative, such as a child 17 or older, or parents or other relatives that you support. You could reduce your tax bill by $500 per qualifying person.