“Tax liability” is a fantastically serious term that simply means “the amount of taxes owed” by a person. In general, the credit has the potential of reducing federal income tax owed by up to a thousand dollars for each child that’s eligible for the claim.
A tax credit for children.
Here are the requirements:
At the end of the year 2010 or 2011, the child must be 17 years old or younger. The child has to be either your child, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendent of any of the just-mentioned people. Adopted children also qualify.
The child in question must not have provided more than half of his or her support and must be claimed as a dependent on your federal tax return.
However, the tax credit for children is available only to those who fall within the accepted adjusted gross income. Phase-outs begin at different points depending on your tax filing status. The phase out begins at $110,000 for married couples filing jointly.
The child tax credit will reduce the amount of taxes you owe dollar for dollar.
The following is a list of income limits before you see a reduction in your child tax credit:
- If married & filing Jointly you can earn up to $110,000.00
- Single, qualifying widower, or head of household you can earn up to $75,000.00
- Married but filing separate you can earn up to $55,000.00
If your income exceeds the above limits, then your credit will be reduced by $50.00 for every $1,000.00 that exceeds the income guidelines.
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This post was written by FBF_Assistant on December 16, 2011

