You might be eligible for a child tax credit. This credit is up $1000 per each eligible child. There are seven qualifying tests that have to be met according to IRS.
- Age test – The child must be under 17 by the end of 2011
- Relationship test – The child must be your child or adopted child, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of the above child such your grandchild, niece or nephew.
- Support test – You must have provided at least 50% of support of the child.
- Dependent test – The child must be your dependent on your tax return
- Joint Return test – The child can not file a joint return for that year
- Citizenship test – The child must be a US citizen or a legal permanent resident
- Income Limitation test – The credit is limited if your modified adjusted gross income is above a certain amount.
Married Taxpayers return $110,000
Married filing separate $55,000
Other taxpayers $75,000
This credit is generally limited by the amount of tax you owe.