Tax credits are a great way to reduce your tax bill this April. The Child Tax Credit helps millions of families cut their taxes; but the rules to figure out whether you're eligible to take the credit can seem complicated.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through the Child Tax Credit and its requirements. Dan notes that the credit offers up to $1,000 per child, but only for children who are 16 or younger as of Dec. 31 of the tax year in question. Dan goes through the other tests for eligibility: The child must generally be a dependent for whom you provide at least half of his or her financial support, and who lives with you for more than half the year. Dan also runs through income limits, with the Child Tax Credit phasing out starting at $75,000 for single filers, and $110,000 for joint filers. Even with those limitations, the Child Tax Credit is large enough to warrant further investigation to see if you're eligible.
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Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.