If you have a qualifying child under the age of 17, you may be entitled to claim this credit. A qualifying child may be a dependent child, stepchild, adopted child, sibling, or step-sibling (or descendant of these individuals), or an eligible foster child. The child must be a U.S. citizen or resident and must live with you for over half the year.
The tax credit is refundable, so you may be able to obtain a tax refund even if the tax credit exceeds your regular or alternative minimum tax (AMT) liability. Currently, the credit is refundable to the extent of 15 percent of your earned income in excess of $3,000, up to the per-child credit amount. Special rules may apply if you have three or more qualifying children and are eligible for the earned income credit (EIC).
Contact us to learn the best steps to limit your tax liability and ensure you’ve taken all allowable deductions and credits.
- John H. Adair
- Adair Advisory Group
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