Who Qualifies for the Child Tax Credit 2014?

If you meet the requirements to claim the Child Tax Credit 2014, your tax bill may reduce up to $1,000 per child.

Ever since entering the world, your child hasn’t stopped growing and learning. Along with that comes new clothes to buy, weekly visits to the grocery store, the obnoxious costs of summer camp, and of course, the endless dance, karate, and art classes!

As a parent, you understand more than ever before, that every dollar counts. Luckily, the IRS gives a few tax advantages to parents, including the Child Tax Credit.

However, you should note that just because you have a child, it doesn’t mean you qualify to claim the Child Tax Credit. You’ll need to meet the seven requirements. 

Wondering if you make the cut to claim the extra money when filing your 2014 Taxes?  If you meet the seven tests below, you’ll qualify to claim the Child Tax Credit.

1. Age Test

At the end of 2014, your child must have been under the age of 17- so 16 years or younger.

2. Relationship Test

In order to claim the child tax credit, the child must be one of the following;

• your child
• your stepchild
• a foster child placed with you by a court or authorized agency
• an adopted child (even if the adoption is not final by the end of the tax year)
• your brother
• your sister
• your stepbrother
• your stepsister
• your niece
• your nephew

3. Dependent Test

If the child’s relationship to you falls within the list above, then you must also be claiming the child as a dependent on your tax return. If someone else is claiming the child as a dependent on their tax return, you won’t be able to claim the Child Tax Credit.

4. Financial Support Test

You must provide at least half of the child’s financial support during the tax year. In other words, the child cannot have provided more than half of his/her own financial support.

5. Residence Test

The child must have lived with you for more than half of 2014.

If your child did not live with you for a certain amount of time in 2014 due to special circumstances, the time away is counted as time the child lived with you. Special circumstances include time spent away due to;

• school
• vacation
• business
• medical care
• military services
• detention in a juvenile facility

6. Family Income Test

Depending on your modified adjusted gross income (MAGI), the amount you receive from the Child Tax Credit may be reduced.

In other words, there’s a phase out threshold.

Your child tax credit will decrease by $50 for each $1000 of income over the following amounts;;

• $55,000 for married couples filing separately
• $75,000 for single, head of household, and qualifying widow or widower filers
• $110,000 for married couples filing jointly.

7. Citizenship Test

The child must be one of the following;

• a U.S. citizen
• a U.S. national
• a U.S. resident alien

File Your 2014 Taxes today with PriorTax and Claim the Child Tax Credit

Not sure whether or not you qualify for the child tax credit? No worries, we’ll help you figure it out.

Create an Account on PriorTax and e-file 2014 tax return today!

This entry was posted on Monday, January 12th, 2015 at 4:12 pm and is filed under Tax Deductions and Credits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.