As far back as 1998, there has been a tax credit deduction for families with children to help offset the amount of income they owe. It is income governed rather than based on the number of children.
At first it was $400 per child based on income of the family, then increased to $500 in 1999. The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the amount to $500 to be increased gradually to a maximum of $1,000 in 2010.
However, another Act for tax relief in 2003, the Jobs and Growth Tax Relief Reconciliation Act plus expansions under both President Bush and President Obama, increased the amount to $1,000 per child. Finally the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2012 made the child tax deduction stable at $1,000 per child.
It applies to all eligible children 16 and under for families that make under $130,000 yearly. Full credit is given to those families under the ceiling of $110,000 income per year, and then adjustments per every $1,000 over that amount to the ceiling income amount of $130,000.
The children eligible can be children of any relationship in the family that are being cared for in the home more than half the year and given more than half of their support. Adopted, step and foster children are all eligible.
It’s easy to claim the credit, just visit http://www.easyincometaxfilingonline.com/ to get started today.
Related post: http://childtaxdeduction.webs.com/