A child tax deduction is available to most people who file a tax return. The child tax credit of $1,000 is allowed for each child living in your home who is under the age of 17 at the time of filing. This credit is a direct reduction against the amount of tax you owe, and it is not affected by your other deductions or tax credits.
To qualify for a child tax deduction, you must have had a child living in your home during the tax year (if you share custody, your custody agreement should specify who is authorized to take the tax deductions for which children) who is a child, adopted child or step child, and you must report the claimed child's social security number on your tax return. The credit will only reduce your tax burden to zero; if you only owe $500 in taxes, you will only receive $500 in tax credit, not the full $1,000. However, you can also complete form 8812 for an additional child tax credit depending on your income. The income limits for the child tax deduction are $110,000 if you are married filing jointly; $75,000 if you are single, head of household, or a qualifying widower; and $55,000 if you are married filing singly.