Tax tips for tax year 2008
Child Tax Credit & Additional Child Tax Credit
For 2008, the child tax credit is maintained at $1,000 for each qualifying child and the minimum earned income amount used to figure the additional child tax credit has increased to $11,750. If you were a member of the U.S. Armed Forces who served in a combat zone, your nontaxable combat pay counts as earned income when figuring this credit limit.
You may be eligible for a child tax credit if you have a qualifying child who is (1) under age 17 at the end of 2008 and (2) a citizen or resident of the United States.
However, you must reduce your child tax credit if your modified adjusted gross income (AGI) is above $110,000 for joint filers, $55,000 for married taxpayers filing separately, and $75,000 for single or head of household taxpayers. Publication 972 has more information.
Please refer to the Instructions for Form 1040, Form 8901, Form 8812, and Publication 972 for further information.