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2010 Child Tax Credits

2010-01-11 by

Today TaxMama hears from Mark in Pennsylvania, with a good question. “Is the Child Tax Credit of $1000 per child still in effect for 2010? I have 5 kids that qualify for the credit and I changed my W-4 to exempt several years ago since I continue to get a large refund. I need to change my W-4 if the Child Tax Credit has expired.”

Dear Mark,

It was easy to find information about 2009: http://www.irs.gov/publications/p972/

But to verify that the credit is still available in 2010 took a lot longer. Good news! Yes, you still have it for 2010, as a result of the American Recovery and Reinvestment Act of 2009.
http://www.irs.gov/newsroom/article/0,,id=205670,00.html

As long as your income is low enough, you have no worries.

Although, you can claim the Additional Child Tax Credit, if your income was too high for the Child Tax Credit. Use Form 8812.
http://www.irs.gov/pub/irs-pdf/f8812.pdf

And remember, you can find answers to all kinds of questions about tax credits and other tax issues, free. Where? Where else? At TaxMama.com.

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IRS Publication 972
Child Tax Credits
IRS FAQs
ARRA and the Additional Child Tax Credit
IRS Form 8812
Additional Child Tax Credit


All Comments RSS

  1. LLoyd Gautreau Says:

    Yes the $1000.00 Child credit is still in effect as long as the child is under the age of 18 year. However, the W-4 is a total difference system which your employer deduct weekly taxes. from your paycheck.Mark is putting a lot of focus on the $1000.00 as if it was a refund. just for the record a credit is not a refund. If the client only has a $500.00 tax liabilities for 2009 then the balance of the 4500.00 is carried the form #8812 as additional child care credit.I hope this help you thanks.

  2. Eva Rosenberg, Your TaxMama® Says:

    Dear Lloyd,

    Thanks for the input.

    For the record, when the tax credit moves to the Additional Child Tax Credit form, Form 8812, it DOES become a refund.

    In Mark's case, that means he has up to $5,000 to use to pay taxes on his income – and the rest is refunded to him when he files his tax return.

    Good deal for him.

    Hugs
    Eva

  3. Blakely Sanford Says:

    It looks like I still have a month or two to make me a new dependent so I can cash in on the $1000 credit too.

  4. Kip G. De Boer Says:

    Also for the record, your child must be under 17 to be eligible.

  5. tax gal Says:

    Nice site Tax Mama!


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