e-newsletter client login
articles and presentations
financial calculators
record retention
tax news
useful site links

Join our mailing list

We publish an e-newsletter that includes the latest news and tax alerts. To subscribe, enter your email address below:


 
Four Things to Know About the Child Tax Credit

February 2017

For more information about tax credits and deductions, contact Elizabeth A. Gardner, CPA, Tax Manager at 315.701.6365 or egardner@gsacpas.com. Elizabeth practices in the areas of individual, partnership and corporate tax return preparation and tax planning for individuals and businesses.

 

 

 

The Child Tax Credit is a tax credit that may save taxpayers up to $1,000 for each eligible qualifying child. Taxpayers should make sure they qualify before they claim it.  Here are four facts on the Child Tax Credit:

1. Qualifications - For the Child Tax Credit, a qualifying child must pass several tests:

  • Age - The child must have been under age 17 on Dec. 31, 2016.
  • Relationship - The child must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-brother or half-sister. The child may be a descendant of any of these individuals. A qualifying child could also include grandchildren, nieces or nephews. Taxpayers would always treat an adopted child as their own child. An adopted child includes a child lawfully placed with them for legal adoption.
  • Support - The child must have not provided more than half of their own support for the year.
  • Dependent - The child must be a dependent that a taxpayer claims on their federal tax return.
  • Joint return - The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
  • Citizenship - The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
  • Residence - In most cases, the child must have lived with the taxpayer for more than half of 2016.

2. Limitations - The Child Tax Credit is subject to income limitations. The limits may reduce or eliminate a taxpayer’s credit depending on their filing status and income.

3. Additional Child Tax Credit - If a taxpayer qualifies and gets less than the full Child Tax Credit, they could receive a refund, even if they owe no tax, with the Additional Child Tax Credit.

Because of a new tax-law change, the IRS cannot issue refunds before Feb.15 for tax returns that claim the Earned Income Tax Credit (EITC) or the ACTC. This applies to the entire refund, even the portion not associated with these credits. The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS expects these refunds to be available in bank accounts or debit cards at the earliest, during the week of Feb. 27. This will happen as long as there are no processing issues with the tax return and the taxpayer chose direct deposit. 

4. Schedule 8812 - If a taxpayer qualifies to claim the Child Tax Credit, they may need to complete and attach Schedule 8812, Child Tax Credit, with their tax return. 

For more information about tax credits and tax deductions, contact Elizabeth Gardner, CPA at 315.701.6365 or egardner@gsacpas.com.

Founded in 1957, Grossman St. Amour CPAs PLLC is located in the historic Armory Square district of Syracuse, New York. The Firm provides businesses and individuals with professional services in the areas of accounting, audit, taxation, business planning and valuation, financial planning, investment consulting, and fraud examination and deterrence. For information about how we can be of service to you, we invite you to visit www.gsacpas.com, or contact us at 315.424.1120.




back to articles & presentations

 
ssc
 

 


Grossman St. Amour CPAs PLLC
110 West Fayette Street, One Lincoln Center, Suite 900 • Syracuse, NY 13202
T 315.424.1120   F 315.422.0829   info@gsacpas.com
Privacy Policy
  PrimeGlobal

Home
| About Us | Our Team | Firm News | Community Involvement | Associations/Memberships | Client Testimonials | Accounting & Auditing Services | Audit & Attest Engagements | Financial Statement Preparation | Bookkeeping | Internal Control Review | Fraud Examination & Deterrence | Consulting Services | Business Formation & Valuation | Financial Benefits & Retirement Planning | Merger, Acquisition & Succession Planning | Management Consulting | Real Estate Planning | Technology Consulting | Tax Services | Income Tax Return Preparation | Payroll & Sales Tax Return Preparation | Tax Planning for Businesses | Tax Planning for Individuals | IRS and State Tax Audit Representation  | Industries Served  | Affordable Housing | Construction & Real Estate | Employee Benefit Plans | Equestrian Businesses | Fire Districts Government / Municipalities | Medical Practices & Healthcare | Not-For-Profit | Public School Districts | Manufacturing and Retail Distribution | Resources | Articles & Presentations | Financial Calculators | Record Retention Guidelines | Tax News | Useful Site Links | Career Opportunities | Benefits | Employee Testimonials | Contact Information | Directions