Tax Relief Act of 1997

Child Tax Credit

Per Child Credit

• $500 per qualifying child ($400 for 1998).

• Reduced in $50 steps for each $1,000 (or fraction thereof) over threshold.

• Threshold is $110,000 for joint returns, $75,000 for single or head of household returns, and $55,000 for married filing separate returns.

• Interacts with other non-refundable credits and with the earned income credit. It may also be affected by the amount of Security Security and self-employment taxes paid.

• Special rules for taxpayers with three or more children.

• Not based on earned income.

Qualifying Child

• Must be your dependent under the age of 17.

• Must be your child (or a descendent of your child), stepchild, or foster child.

• No limit on the number of qualifying children.

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