A "qualifying child" for purposes of the Child Tax Credit (CTC) must meet several specific criteria as outlined in the Internal Revenue Code, Treasury Regulations, and various IRS publications.
- Relationship Test: The child must be the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these relatives (e.g., grandchild, niece, or nephew).
- Age Test: The child must be under the age of 17 at the end of the tax year. However, for certain tax years, such as 2021, the age limit was temporarily increased to under 18.
- Residency Test: The child must have lived with the taxpayer for more than half of the tax year. Temporary absences for special circumstances such as school, vacation, or medical care are considered as time lived with the taxpayer.
- Support Test: The child must not have provided more than half of their own support during the tax year.
- Citizenship Test: The child must be a U.S. citizen, U.S. national, or U.S. resident alien. Nonresident aliens generally do not qualify unless they meet specific exceptions.
- Dependent Test: The child must be claimed as a dependent on the taxpayer’s return.
- Filing Status Test: The child must not file a joint return for the year, unless it is only to claim a refund of withheld income tax or estimated tax paid.
- Social Security Number (SSN): The child must have a valid SSN issued before the due date of the taxpayer's return (including extensions). The SSN must be valid for employment in the United States.
These criteria ensure that the child is closely related to the taxpayer, financially dependent, and legally present in the United States, aligning with the policy goals of the Child Tax Credit to support families with dependent children.
Sources:
§ 24. Child tax credit
A Call for Change: Simplifying the Children’s Education Tax Credit System
Rev. Proc. 2022-12
PMTA 01672
Publication 501 (2023)
Publication 519 (2023)
