Are You Eligible for the Child Tax Credit?

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If you have a child and you’re preparing your taxes, then you probably already know that, in most cases, you can
claim them as a dependent in order to receive a tax credit (of $1000 per child). However,
if it was that black-and-white, then everyone who had kids staying with them
for more than a couple of weeks at a time would be trying to get the deduction. In order
to actually (and legitimately) qualify, there are several specific things that you need to
know. If you’re wondering what those are, here’s a list:

They must be a citizen of the United States. This one might seem
like a given, but with more and more people adopting internationally, it’s actually a good
thing to know beforehand so that you can get the proper paperwork in order.

They must be related to you. This can mean that they’re your son
or daughter by birth, your adopted child, your stepchild or even your foster child. Or, they
can be your brother or sister, niece or nephew or you’re their grandparent. Bottom line, it
must be a family member or a foster situation.

They must not be married. Being that to the IRS, a child is
considered someone who is under the age of 17, this one might seem a bit odd, but the
truth of the matter is that sometimes teenagers getting married really young. If that’s
the case with your child and they are claiming their spouse on their own taxes, then you
can’t claim them as a dependent (even if they live with you).

They must not be (totally) financially independent. A lot of older
teenagers have part-time jobs, but if the child living with you is supporting themselves
financially by more than 50 percent, you are not able to get a tax credit.

They must not be claimed by another individual. When it comes to
filing your taxes, a surefire way to get audited is when two or more people try and claim
one dependent in order to get a child tax credit. The one who is not granted the credit
can end up dealing with some pretty hefty penalties (including paying additional taxes
and interest), so make sure that this is thoroughly discussed with the other parent or
caregiver before making this kind of mistake.

They must have lived with you for more than a few weeks.
Sometimes tragedies happen and a child becomes a dependent of someone as a direct
result. Or, a foster parent has multiple children staying with them at any given time.
However, in order to claim children as a dependent, they must have lived with you for at
least six months. Otherwise, you will have to wait until the following year to list them.

You must know what to do if you are separated. There are people
who end up filing for an IRS extension due to matters like this one. If you and your spouse are
currently separated, there are special provisions that are made for you (and him/her)
as it relates to claiming your child as a dependent. Customarily, the custodial parent is
the one who is able to claim the child, but they have the right to waive that and grant
the tax credit to the non-custodial one if they so choose. If the parents want to split the
credit, they parents must have been apart for at least six months; they both most have
provided for at least half of the child’s financial support and the child must have been in

one (preferably both) of their parent’s custody for the past year. For more information on
this, go to IRS.gov and put “Form 8332” in the search engine.