The child tax credit is a credit that may reduce your federal tax if you have one or more qualifying children. Your qualifying child is defined by the Internal Revenue Service (IRS) as:

--          Your son, daughter, stepchild, foster child, sibling or step-sibling, or a descendent of these such as a grandchild, niece, or nephew:

--          And, who was under the age of 17 years at the end of the tax year

--          And, who lived with you for more than half of the year, with certain exceptions

--          And, who did not provide more than one-half of their own support during the tax year

--          And, was a U.S. citizen, national, or resident alien, or, if you are a U.S. citizen or national, was your adopted child who lived with you for the entire year.

A special rule applies if your child is also a qualifying child of another person.

Your child tax credit may be reduced if your modified adjusted gross income is above a certain limit or if your federal tax liability is less than the child tax credit. If you have no federal tax liability, you cannot claim the child tax credit. However, you may qualify for the additional child tax credit and receive a refund even if you do not owe any tax.

To claim the child tax credit, for each of your qualifying children you must either:

--          Check the box on line 6c, column (4) of Forms 1040 or 1040A

--          Check the box on line 7c, column (4) of Form 1040NR

--          Complete Form 8901 if the child is not your dependent

--          Complete Form 8812 to determine if you qualify for the additional child tax credit.

You cannot claim the child tax credit on Forms 1040EZ or 1040NR-EZ.