Child Tax Credit – 2005
The child tax credit is issued to people who have qualifying children to help ease the financial burden of raising a family. The tax credit varies from year-to-year and this page covers 2005.
Child Tax Credit – 2005
Prior to claiming the tax credit for 2005, you must have a qualified child. Don’t worry, it isn’t a talent contest. Instead, the child must meet the following criteria:
Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild),
- Was under age 17 at the end of 2005,
- Did not provide over half of his or her own support for 2005,
- Lived with you for more than half of 2005, and
- Was a U.S. citizen, a U.S. national, or a resident of the United States.
An adopted child is always treated as your own child. An adopted child includes a child lawfully placed with you for legal adoption. They must, however, still meet the rest of the elements of the above qualification test.
If your have a qualifying child, the child tax credit for 2005 is as much as $1,000. As is always the case with taxes, there are some limitations on the amount of this tax credit. Specifically, the tax credit is reduced if you are earning over the following amounts.
- Married filing jointly - $110,000.
- Single, head of household, or qualifying widow(er) - $75,000.
- Married filing separately - $55,000.
If your adjusted gross exceeds these figures, you have to go ahead and figure out what tax credit you can claim using the dreaded Publication 972. In truth, Publication 972 isn’t that difficult, but it is next to impossible to explain on this page.
If you have to experience the joy of Publication 972, don’t be too worried. If the numbers come out correct, you’ll get a healthy tax credit and you may also be given a second tax credit for each qualifying child.
No, I am not going to try to explain that one either. Just fill out the form and see if you get a happy ending.