FEDERAL CHILD TAX CREDIT (CTC)
Frequently Asked Questions
May a household (family) claim both the CTC and the EIC?
Yes, provided you meet the eligibility criteria for both the CTC and the Earned Income Credit (EIC), you may claim them both. The EIC is refundable. For the 2008 tax year, the CTC is refundable for households with taxable earned income greater than $8,500.
May an immigrant worker claim the CTC?
Yes, provided the worker has either a Social Security number or an Individual Taxpayer Identification Number (ITIN). The qualifying child must be a U.S. citizen or resident alien.
May a noncustodial parent claim the child tax credit?
Yes, provided they can claim the child(ren) as a dependent on his or her tax return and meet the other eligibility criteria for the CTC. Parents who file "married filing separately" have the phase out of the CTC begin at $55,000 compared to $110,000 for couples who file "married filing jointly."
What are differences in the definition of Qualifying Child between the CTC and EIC?
There are both similarities and differences between the CTC and Earned Income Credit (EIC) with regard to the definition of “qualifying child.” Here is a summary:
- The CTC and EIC are similar in what constitutes the type of relationship you need to have with a person in order for him or her to be your qualifying child.
- The CTC requires that a child be under the age of 17. For the EIC, a “qualifying child” may be under age 24 and a full-time student; or any age and have a permanent disability.
- The CTC requires that you are able to list the child as your dependent on your tax return. This is not a requirement for the EIC.
- The EIC requires that you live with the individual for at least 6 months during the year in which you are claiming him or her as a “qualifying child” on your tax return. The CTC does not have this requirement (except in the case of an “eligible foster child”). However, if someone lives with you in your household, this can be an important consideration in being able to claim the person as your dependent.
- While not related to the definition of qualifying child, persons whose tax status is "married filing separately" may claim the CTC, but not the EIC.
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