Child Tax Credit
by: Low Income Taxpayer Clinic (LITC)
What is the Child Tax Credit?
The Child Tax Credit is a tax benefit for people with children that have low or moderate incomes.
When you file a tax return, the Child Tax Credit could reduce your tax. Also you might receive a cash refund!
Is the Child Tax Credit like the Earned Income Tax Credit (EITC)?
The Child Tax Credit is not the same as the EITC. The Child Tax Credit and the EITC have different rules.
Many people who do not qualify for the EITC will qualify for the Child Tax Credit. Some people will qualify for both the Child Tax Credit and the EITC.
Who can receive the tax credit?
To receive the Child Tax Credit, your dependent:
1. Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew),
2. Was under age 17 at the end of 2008,
3. Did not provide over half of his or her own support for 2008,
4. Lived with you for more than half of 2008 (there are exceptions to this factor), and
5. Was a U.S. citizen, a U.S. national, or a U.S. resident alien. If the child was adopted, see the IRS web site at www.IRS.gov.
and
There are certain income limits. For more information, see the IRS web site at: www.IRS.gov.
How much will my Child Tax Credit be?
The exact amount of your Child Tax Credit depends on your income and the number of children that you have.
Will the Child Tax Credit affect my public benefits?
The Child Tax Credit will not affect your eligibility for certain public benefits, such as food stamps, public housing, welfare and SSI.
If you already receive assistance, the Child Tax Credit should not affect the amount of your benefits.
The Child Tax Credit should not affect your eligibility or the amount of most of your public benefits, even if you receive a cash refund of the Child Tax Credit.
If you are denied public benefits or your amount decreases because of the Child Tax Credit, you should call the MLSA HelpLine and ask about the Low Income Taxpayer Clinic (LITC).
Will I receive a cash refund of the Child Tax Credit?
The Child Tax Credit reduces the amount of tax you owe. In addition, if the Child Tax Credit you are eligible for is greater than your tax liability, you may be able to claim the difference as a refund. This refund is called "additional" Child Tax Credit. You must file Form 8812 to claim "additional" Child Tax Credit.
If you did not get the Advance Child Tax Credit and you are applying for Child Tax Credit and "additional" Child Tax Credit on your income tax return, you may not get the same cash refund as you would have with the Advance Child Tax Credit.
What can I do if I was wrongly denied the Child Tax Credit?
Tax laws can be confusing and hard to understand. If you feel you were wrongly denied the Child Tax Credit, the MLSA Low Income Taxpayer Clinic (LITC) may be able to help you appeal the denial. For assistance call the MLSA HelpLine at 1-800-666-6899.
To find out how much Child Tax Credit you can receive, you should:
- Talk to a Volunteer Income Tax Assistance (VITA) Volunteer for the location of a VITA site at: 1-800-829-1040.
- Talk to a tax professional.
Tax Information and Resources
The following resources can provide you with more tax information and/or assistance with filing your taxes:
- Volunteer Income Tax Assistance (VITA): 1-800-829-1040
- I-CAN e-filing allows you to file your taxes and apply for the Earned Income Credit for free at: http://www.icanefile.org
- IRS Tax Information for Individuals: http://www.irs.gov/individuals/index.html
- MLSA Low Income Taxpayer Clinic gives low-income taxpayers free legal assistance on federal tax matters year round: (406) 543-8343 or (800) 666-6899.
Revised 2009
The clinic listed herein is partially funded through matching grants provided by the Internal Revenue Service pursuant to the Internal Revenue Service Restructuring and Reform Act of 1998. The partial funding by the IRS does not imply that the clinics have a preferential relationship with the IRS. The decision of whether to use these clinics is your own and their use will not affect your rights before the IRS.
Call the MLSA HelpLine for legal assistance:
(800) 666-6899
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