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Child Tax Credit Limits

by Peter Neeves
  • Overview

    The IRS provides a child tax credit for children under age 17.
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    The Internal Revenue Service (IRS) allows a tax credit of up to $1,000 for each dependent child. Taxpayers need to meet criteria to qualify for the credit. The credit is a nonrefundable credit; it cannot reduce a taxpayer's liability below zero.
  • Dollar Limit

    The maximum amount of child tax credit is $1,000 per child. There is no limit to the number of children the credit can be claimed for, as long as the children are qualifying dependents.
 
  • Age Limit

    The credit cannot be claimed for children over the age of 16. If the child turned 17 at any point during the year the taxpayer cannot claim credit for that child.
  • Income Limits

    The child tax credit is subject to income limits. For the 2009 tax year the credit was reduced for taxpayers with adjusted gross income above $110,000 if married filing jointly; above $55,000 if married filing separately; or above $75,000 if filing as single, head-of-household or as a qualifying widow or widower. Taxpayers with incomes above these limits may be eligible for the additional child tax credit.
  • Qualifying Child

    In addition to the age limit there are other limits on what children qualify. The child must be your dependent, have not provided over one-half of his own support, lived with you for more than one-half of the year, and be a U.S. citizen, national, resident alien or an adopted child.
  • Nonrefundable Credit

    The child tax credit is a nonrefundable credit. The credit is limited to reducing a taxpayer's liability to zero, but not below. Taxpayers subject to this limit may qualify for the additional child tax credit. The additional child tax credit is a refundable credit.

    References & Resources