Qualifying Child Rules & Assumption for the CTCulator
- The earned income threshold for the refundable credit is lowered to $2,500.
- The beginning credit phaseout for the child tax credit increases in 2018 to $200,000 ($400,000 for joint filers).
- The qualifying child must not provide more than half of his or her own support
- You must be able to claim the qualifying child as a dependent on your tax return (must meet all 4 tests in order to claim your child as a dependent – see your preparer for more info)
- The CTCulator does not take into account any exclusion of income from Puerto Rico and Foreign Earned Income from the following forms: 2555 Lines 45&50; 2555-EZ Line 18 and 4563 Line 50
- The qualifying child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
- Qualifying Child: Relationship to child must be son or daughter, a stepchild, brother or sister, stepbrother, stepsister and any of their descendants. A foster child must be placed with you by a court or authorized agency. An adopted child is always treated as your own child.
- Qualifying Other Dependent: All of the "Qualifying Child" relationships above for ages over the of 16 and other relatives including mother, father, grandparents, aunt, uncle, brother-in-law, sister-in-law, daughter-in-law, son-in-law, son or daughter of your half-brother or half-sister or any member of your household that lived with you all year.
- The child cannot file a joint return (or file it only to claim a refund).
Qualifying Child Test must meet all 6 tests below:
- Age Test: The child was under age 17 (so 16 or younger) at the end of the tax year.
- Relationship Test: The child is your daughter, son, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-sister or half-brother. The child can also be the direct descendant of any of those just mentioned (e.g. your grandchild, niece or nephew).
- Support Test: The child did not provide more than half of their own "support." This is money they use for living expenses. The child also cannot file a joint return that year.
- Dependent Test: The child must be claimed as your dependent on your federal tax return.
- Citizenship Test: The child must be a U.S. citizen, a U.S. national or a U.S. resident alien. For the 2018 tax year, the child must also have a Social Security Number.
- *Resident Test: The child must have lived with you for more than half of the tax year. (*exception - temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military services or detention in a juvenile facility, are counted as time the child lived with you)