When you file your 2020 taxes in 2021, you may get a tax credit for each child. The Child Tax Credit for 2020 is $2,000 for each qualifying child. However, the Child Tax Credit phases out for higher incomes. You can claim the Child Tax Credit in addition to the Standard Deduction, even if you do not itemize your deductions.
You can take the full Child Tax Credit if you are married filing jointly with a modified adjusted gross income under $400,000. For others the threshold is $200,000.
Any biological children age 16 or younger are eligible if you are married filing jointly. If you are divorced, then who gets to claim the child tax credit was likely part of your final divorce settlement. Beyond that, there are a lot of different rules that I’m not going to cover here, but the IRS has a useful tool to determine if your child or dependent qualifies for the Child Tax Credit.
There is an another credit for dependents literally called the Credit for Other Dependents. You can find more information about that in Publication 972.
By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications. The material provided on this website is for informational use only and is not intended for financial or tax advice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own tax professional when making decisions regarding your tax situation.