Who can claim the child tax credit? The child tax credit requires that you have at least one child under the age of 17. The child must also be your son, daughter, adopted son or daughter or stepchild. The child must be a US citizen, and must live with you at least half the time in order to claim the child tax credit. There are adjusted gross income limits with regard to the child tax credit. A married couple filing jointly must have an adjusted gross income under $110,000, while a married couple filing separately must have an income under $55,000. All others have an income limit of $75,000 in order to claim the child tax credit.

In 2007, the child tax credit entitles you to a $1000 credit per qualified child, assuming you meet all requirements. You may also, if your tax debt is less than the credit, be able to claim an additional child tax credit, not to exceed $1000 per child. The child tax credit may be claimed on either form 1040 or form 1040A. All tax filing software will figure your child tax credit automatically, making this a very convenient credit for many families.

Other credits that may be relevant for some families with children include the child and dependent care credit. This tax credit allows you to claim a certain amount of allowed child care expenses as a tax credit; however, unlike the child tax credit, this one is not refundable. The maximum credit available is $3000 for one child or $6000 for more than one qualifying child.

Tax credits, including refundable credits like the child tax credit, can be combined with the Earned Income Credit (EIC). The EIC is especially helpful for lower income working families with children, and many families find the substantial tax refund each year financially quite helpful. You can also choose to have your earned income credit paid out in your paychecks throughout the year by filing appropriate paperwork with your employer.

While modern tax filing software has made claiming relevant credits easier than ever before, do be aware and knowledgeable about the options available for you. This can be especially important if you still file your taxes the old fashioned way; however, a good knowledge base regarding tax issues can help insure the accuracy of your tax return and keep your liability as low as it ought to be. Tax credits can save you a substantial sum and provide you with funds you did not expect. For more information about the child tax credit, review the following IRS publication at http://www.irs.gov/newsroom/article/0,,id=106182,00.html.