The federal income tax filing deadline is just under three weeks away. For procrastinators, this may seem like plenty of time. After all, doing things at the last minute is the nature of what procrastinators deal with. However, when you are recently divorced (or planning to be divorced) there may be additional financial issues that you may have to deal with. In our next few posts, we will explore some of those issues. But for now, this post will deal with questions surrounding the Child Tax Credit.
Under federal law, you may be able to reduce your income tax by $1000 for each child you claim on your tax return. So for divorcing or separated parents, this credit could be highly coveted (and fought over). How do you know if you qualify for it? Consider the following:
– Has your child has lived with you for six months or more?
– Has your child has filed another tax return with someone else?
– Have you have provided more than half the child’s financial support during the year?
– Is the child under age 18, or did he or she make less than $2800 if older and a full-time student?
– Is your income under $55,000 if filing as a single parent?
If you answered “yes” to these questions, chances are that you will be able to claim the credit on your return. However, if your soon-to-be ex-spouse files first and claims the credit before you do, you could encounter additional issues with the IRS.