There are a few reasons why you may wish to not claim child tax credit.
- In order to claim the child tax credit, your relationship to the qualifying child must be: daughter (including step-daughter), son (including step-son), foster child, grandchild, sister, brother, niece, or nephew and the dependent's age must be under 17. These are the only categories permitted for relationship. If the child's relationship is not listed above, you will need to check the election to not claim Child Tax Credit.
- In some cases, there is a problem with the IRS records that will prohibit you from filing an electronic return and claiming child tax credit.
General Child Tax Credit Information:
This credit is for people who have a qualifying child. A qualifying child for purposes of the child tax credit is a child who:
- Is claimed as your dependent on line 6c, and
- Was under age 17 at the end of the tax year, and
- Is (a) your son, daughter, adopted child, stepchild, grandchild;
(b) Your brother, sister, stepbrother, stepsister, or a descendant of your brother, sister, stepbrother, or stepsister (for example, your niece or nephew), whom you cared for as your own child; or
(c) A foster child (that is, any child placed with you by an authorized placement agency whom you cared for as your own child), and
- Is a U.S. citizen or resident alien.
Note: The above requirements are not the same as the requirements to be a qualifying child for the earned income credit.
A child placed with you by an authorized placement agency for legal adoption is an adopted child even if the adoption is not final. An authorized placement agency includes any person authorized by state law to place children for legal adoption.
A grandchild is any descendant of your son, daughter, adopted child, or stepchild and includes your great-grandchild, great great-grandchild, etc.
This credit is in addition to the credit for child and dependent care expenses and earned income credit.
This credit is used to reduce a tax liability and is not used as a straight credit. If your tax liability is more than the credit and you qualify, you will receive the full credit ($1000 per child). If your tax liability is less than the full credit, you will receive a credit equal to your tax liability.