$500 Child Credit of 1997 Tax Act

$500 Child Credit of 1997 Tax Act

$500 credit per eligible child

Phase-out ranges

Nonrefundable credit

$500 credit per eligible child

$400 credit per child beginning in 1998

$500 credit per child in 1999 and subsequent years

No limit on the number of children

Applicable to those under age 17 whom you can claim as a dependent

This is a credit, not a deduction, and this works to your advantage

Phase-out ranges

Lose $50 in credits for each $1,000 that AGI exceeds the following thresholds

Single or Head of Household : $75,000 and above

Married, joint : $110,000 and above

Married, separate : $55,000 and above

Nonrefundable credit

Must have a tax liability to benefit -- unlike earned income credit

Exception - a portion is refundable if low-income with three or more children