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Author: TaxService Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121335  
Subject: Re: Tax credit for children Date: 7/26/1999 10:26 PM
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I was wondering if my child who turns 17 this November will be eligible for the $500 tax credit for the year l999. Everything that I read says "under age 17" -- does that mean 16 and under? Thanks.

Correct, once your children pass their 16th year, you would no longer be eligible for the credit.

Beginning in 1998, you may be able to claim the child tax credit if you have a qualifying child under age 17. The credit can be as much as $400 for each qualifying child.

A qualifying child is a child who:

Is claimed as your dependent,
Was under age 17 at the end of 1998, and
Is your son, daughter, adopted child, descendant of a child, stepchild, or foster child, and
Is a U.S. citizen or resident alien
The credit is limited if your modified adjusted gross income (MAGI) is above a certain amount. The amount at which this phase out begins depends on your filing status, which is as follows:

Married filing joint/ Qualifying widow(er) – $110,000
Head of Household/ Single – $75,000
Married filing separate – $55,000

--------------------------------------------------------------------------------

However, the basic child tax credit is limited by the amount you owe. You may be able to claim the additional child tax credit if you have three or more qualifying children and you are not able to claim the full $400 child tax credit for each child. The additional child tax credit may give you a refund even if you do not owe tax.
The total of both credits cannot be more than $400 for each qualifying child on your tax return. These credits are in addition to the child and dependent care credit and the earned income credit.

Use Form 8812 to figure the additional child tax credit and attach it to your return. (TaxTopic 606)

The $400. amount, specified above was for 1998. It is increased to $500. for 1999.

"Jack"
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