Child Tax Credit

You could claim your child, stepchild, adopted child, grandchild or great-grand child for child tax credit. Foster child is eligible only if the child was placed with you by a court or other authorized agency and the child must live with you for more than a half the year when the tax is filed. Form 1040 and 1040A can be used for the claim of child tax credit. The credit is $1,000 per child.

Qualifications for child tax credit:

• The dependent must be a U.S. citizen or resident
  
• The dependent is under age 17 at the end of the tax year
  
• Income limits for 2009 and 2010 tax years
  
  • Married and filing jointly: $110,000 AGI
    
  • Single: $75,000
    
  • Married but filing separate: $55,000
    
  • If the income exceeds the above limits, the credit is reduced by $50 for each $1000 that exceeds the income limit.