CHILD TAX CREDIT

The following is primarily summarized from Publication 972: Child Tax Credit (www.irs.gov/pub/irs-pdf/p972.pdf) posted on the Internal Revenue Service (IRS) website.

WHAT IS THE CHILD TAX CREDIT?

The Child Tax Credit (CTC) is a tax credit for single or married workers earning low or moderate incomes who have dependent children under age 17. Workers who qualify for the CTC and file a federal tax return can receive a credit of up to $1,000 per child. The amount of the credit will depend on the worker's income. CTC funds are first used to reduce or eliminate any income tax liability owed by the family; remaining amounts are refunded. Workers whose earnings are too small to have paid taxes may also be eligible for the CTC.

WHO IS ELIGIBLE FOR THE CHILD TAX CREDIT?

To be eligible for the CTC refund, a single or married worker must:

• Be able to claim an exemption for one or more dependent children under age 17 on his or tax return.
• Have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). ITINs are issued by the IRS (www.irs.gov/individuals/article/0,,id=96287,00.html) to individuals who are unable to obtain a SSN. Immigrant workers with either type of number may be eligible for the CTC.

Children who can be claimed for the CTC include sons, daughters, stepchildren, grandchildren, adopted, and foster children as long as they have lived with the worker for more than half of the year. Brothers, sisters, stepbrothers, stepsisters, nieces or nephews can be claimed as foster children if they lived with the worker for more than half of the year and were raised as family members.  Children must be under age 17 at the end of the year.  Also, the child must not have provided more than half of his/her support for the year. The CTC does not affect eligibility for benefits such as public welfare, Medicaid, Food Stamps (SNAP), SSI, public or subsidized housing, or other programs financed even in part by federal funds.

FILING FOR A CHILD TAX CREDIT

Workers raising dependent children under age 17 must file either Form 1040 or 1040A. Form 8812 must be filled out and attached if family's income tax was less than its maximum CTC amount. Workers with children cannot file form 1040EZ.

FORMS TO BRING TO A TAX ASSISTANCE SITE

When visiting an Connecticut Tax-Aide Income Tax Assistance or VITA (Volunteer Income Tax Assistance) site, bring the following:

• All W-2 forms for household
• 1099 Forms (if any)
• Social Security Card(s) or Individual Taxpayer ID Number(s) for all household members
• Last Year's Tax Return (if you have one)
• Child care provider name, address and tax ID number
• Education expenses and student loan information
• For direct deposit, a check or savings account number with routing number
• Copies of payments to municipalities (local property taxes such as automobiles) for state tax returns
• Any other tax-related documents you have received

TO FIND PROVIDERS IN CONNECTICUT'S COMMUNITY RESOURCES DATABASE:

• Search by service name: Federal Child Tax Credit Information

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SOURCES: 2-1-1 database; Publication 972 : Child Tax Credit posted on the Internal Revenue Service website
INTERNET PAGE PREPARED BY: 211/pt
CONTENT LAST REVIEWED: January2012