IRS Publication 972: Child Tax Credit

AAA

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 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.

VIDEO

RELATED TERMS
  1. IRS Publication 519 - U.S. Tax ...

    A document published by the Internal Revenue Service (IRS) that ...
  2. Child Tax Credit

    A credit given to taxpayers for each dependent child that is ...
  3. Additional Child Tax Credit

    A refundable credit that can be claimed by taxpayers who are ...
  4. 1040 Form

    The standard Internal Revenue Service (IRS) form that individuals ...
  5. Earned Income

    Income derived from active participation in a trade or business, ...
  6. Eurasian Economic Union (EEU)

    An economic union created in 2014 by a treaty signed by Russia, ...
Related Articles
  1. Why Some Kids Never Leave The Nest
    Budgeting

    Why Some Kids Never Leave The Nest

  2. How To File Your Child's First Income ...
    Taxes

    How To File Your Child's First Income ...

  3. Taxing Times For Divorced Parents
    Taxes

    Taxing Times For Divorced Parents

  4. How To Claim A Dependent On Your Tax ...
    Taxes

    How To Claim A Dependent On Your Tax ...

comments powered by Disqus
Hot Definitions
  1. 80-10-10 Mortgage

    A mortgage transaction in which a first and second mortgage are simultaneously originated. The first position lien has an ...
  2. Passive ETF

    One of two types of exchange-traded funds (ETFs) available for investors. Passive ETFs are index funds that track a specific ...
  3. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  4. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  5. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center