Child Tax Credit: what it's worth and who qualifies

Who is a qualifying child?

Your child must pass all of these tests:

• Age: under 17 at the end of the year.
• Relationship: your son, daughter, stepchild, foster child, brother, sister, half-sibling, step-sibling, or a descendant of one of them (for example, a grandchild, niece or nephew).
• Residence: lived with you for more than half the year (temporary absences such as school count as time at home).
• Support: the child didn't provide more than half of their own support.
• Dependent: you claim the child as your dependent, and they don't file a joint return (except to claim a refund).
• Social Security number: the child has an SSN valid for work, issued before the due date of the return.

What if I owe little or no tax?

The Child Tax Credit first lowers the tax you owe. If the credit is bigger than your tax, part of it, up to $1,700 per child, can be paid to you as a refund. This refundable part is called the Additional Child Tax Credit and depends on your earned income.

What about older kids and other relatives?

A child who is 17 or older, or a relative you support such as a parent, may qualify you for the Credit for Other Dependents, worth up to $500 each. It isn't refundable, but it still lowers your tax.

When will my refund arrive?

By law, the IRS can't send refunds that include the Additional Child Tax Credit before mid-February, even if you file in January. Most of these refunds arrive by early March when you choose direct deposit.