What Was Publication 972: Child Tax Credit?
I'm here to explain Publication 972, which was an IRS document that guided you on figuring out the exact amount of the child tax credit you could claim. You used it for tax years 2020 and earlier. Starting from 2021, you won't use Publication 972 anymore—instead, turn to Schedule 8812 along with your Form 1040 to handle the child tax credit and credits for other dependents.
This document kept you updated on any changes to the tax credit for that year. It included a worksheet for calculating your child credits in unusual situations, and it gave clear instructions on determining what child tax credit to claim.
Key Takeaways
Publication 972 helped you calculate one of the most popular tax credits in America, the Child Tax Credit. Remember, it's no longer in use for tax years 2021 and onward. Also, there are upper-income limits that affect your eligibility for this credit.
Understanding Publication 972: Child Tax Credit
If you're a parent, foster parent, or guardian of children under 17, you can use the child tax credit to reduce your taxable income for the year. Claim it on Form 1040 or 1040NR.
Eligibility
For tax years 2020 and prior, IRS Publication 972 determined if a child qualified. According to it, a qualifying child or dependent had to meet these criteria.
Qualifying Child Criteria
- Under the age of 17 by the end of the tax year
- Claimed as a dependent on your federal tax return
- A U.S. citizen, resident alien, or national—check IRS Publication 519 for more on residency
- Lived with you for more than half of the tax year
- Did not provide more than half of their own financial support
Credit Amount
Publication 972 told you how much credit you could get. In 2020, the maximum per qualifying child was $2,000. That amount has been set since 2018, when the IRS doubled it from the $1,000 available in 2017.
Fast Fact
Publication 972 included a worksheet you could use to figure out the exact child tax credit amount to claim.
Refunds
The publication also guided you on getting a refund for any unused credit. After 2017 law changes, the refundable part—called the additional child tax credit (ACTC)—went up to $1,400 from $1,000. This helps low-income taxpayers whose credits exceed their tax bills get up to $1,400 back.
If your family income is over $2,500 annually, you can request this refund via the ACTC. To claim it, complete Schedule 8812.
Special Considerations
The child tax credit has limits and isn't available if your income is too high. In 2020, it phased out for those with an adjusted gross income (AGI) of $200,000, or $400,000 if married filing jointly.
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