Beginning in 1998, you may be able to claim the child tax credit if you have a qualifying child under age 17. The credit can be as much as $400 for each qualifying child.

A qualifying child is a child who:

1. Is claimed as your dependent,
2. Was under age 17 at the end of 1998, and
3. Is your son, daughter, adopted child, descendant of a child, stepchild, or foster child, and
4. Is a U.S. citizen or resident alien

The credit is limited if your modified adjusted gross income (MAGI) is above a certain amount. The amount at which this phase out begins depends on your filing status, which is as follows:

1. Married filing joint/ Qualifying widow(er) – $110,000
2. Head of Household/ Single – $75,000
3. Married filing separate – $55,000

However, the basic child tax credit is limited by the amount you owe. You may be able to claim the additional child tax credit if you have three or more qualifying children and you are not able to claim the full $400 child tax credit for each child. The additional child tax credit may give you a refund even if you do not owe tax.

The total of both credits cannot be more than $400 for each qualifying child on your tax return. These credits are in addition to the child and dependent care credit and the earned income credit.

Use Form 8812 to figure the additional child tax credit and attach it to your return.

For more information on the child tax credit, see Publication 521. Publications can be downloaded from this site, or ordered by calling 1-800-829-3676.

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