Investopedia

Continue to Site »

IRS Publication 972: Child Tax Credit

Filed Under » , , , , ,
Dictionary Says

Definition of 'IRS Publication 972: Child Tax Credit'

A document published by the Internal Revenue Service (IRS) that provides guidance on determining the child tax credit that can be claimed and how to calculate the amount of earned income to report when applying for the Additional Child Tax Credit. IRS Publication 972 provides more specialized information pertaining to the child tax credits found in Form 1040 and Form 8812.

IRS Publication 972 has a worksheet that helps determine if a child is eligible, and how much credit a taxpayer can take. The maximum amount that can be claimed for a qualifying child is $1,000, and must be claimed using Form 1040.

Investopedia Says

Investopedia explains 'IRS Publication 972: Child Tax Credit'

Taxpayers must have a qualifying child in order to be eligible for the child tax credit. A qualifying child is under the age of 17, is claimed as a dependent on the taxpayer's return and is a U.S. citizen, resident alien or national. More information on residency requirements can be found in IRS Publication 519.

Related Video for 'IRS Publication 972: Child Tax Credit'

Articles Of Interest

  1.

    Why Some Kids Never Leave The Nest

    Giving your children a free ride can be costly for both of you.

  2. Taxing Times For Divorced Parents

    Find out how to deal with the tax issues that arise for divorced parents with dependent children.

  3. How To Claim A Dependent On Your Tax Return

    If you are a caregiver, get to know the rules for claiming a dependent before filing your taxes.

  4. How To File Your Child's First Income Tax Return

    Use this quick parental guide to help your child learn this process and establish good habits.

  5. Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.

  6. Tax Deductions Vs. Tax Credits

    Understanding the difference between tax deductions and credits is crucial, as the tax strategies that you adopt now can favor one over the other and yield substantially different tax savings.

  7. Has Income Tax Become A Class Tax On The Poor?

    With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ...

  8. Possible Effects Of The Online Retail Tax

    The U.S. Senate has passed a bill that will impose a sales tax on online retailers. Discover how the Marketplace Fairness Act could affect your bottom line.

  9. How To Get The Most Out Of Hiring An Accountant

    When you hire an accountant, getting good tax advice going forward is as valuable as – or perhaps even more valuable than - getting the previous year’s taxes filed correctly. Learn what you need ...

  10. How The 2014 Obama Budget Could Affect Your Finances

    Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  2. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  3. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  4. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  5. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  6. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.
Trading Center