Child tax credit is nothing but an advantage to the adults who have a qualifying child as their dependant. There are certain rules for a child to be a qualifying child. Those set of rules are:-
- Relationship: The qualifying child must be the person’s own child or foster child, brother or sister, grandchild, step brother or step sister, adopted child or niece and nephew. This child must be completely dependent only on one person.
- Age: There are 3 criteria under this rule. One is the child must be under the age of 19. Second is, if the child is a full time student then he must be under the age of 24, and last if there is no age bar if the child is physically challenged.
- Residency test: The child must live with the person who is applying for more than atleast six months.
- Child should be a citizen of the united states in case of adopted or foster child.
- The child should not have filed a joint tax return with the other partner.
- There are some income limitations. This can be checked because this keeps changing with every financial year.
- The child must not be able to meet their own financial needs.
About $1000 can be earned by a person under this child tax return if he has a qualifying child. The child should also be legally claimed as a dependant by the person who is applying for the tax return. But anyways the credit is limited to certain amount. This happens when the modified gross income goes beyond certain level.
This child tax credit varies with each country like United Kingdom, United States and Germany. This also depends on the number of the dependents in the family. As the number of dependants increase and the income level decrease the child tax credit score will become higher.