Why does child tax credit stop at 17 and not 18?

[Free4Life11]

My mom was all upset because they got a letter from the IRS saying they owe $1000 on taxes. There was a mistake and my sister who turned 17 in November 2005, was claimed for the child tax credit.

Anyone know why it stops at age 17 and not 18? Isn't 17 still considered a minor?

Either way she said it's time for a new accountant.

 

[Jules76126]

I dont really know why it stops but I am sure my parents wished it didnt. However they still claim me as a dependent since I am dependent on them to pay my college and feed me and do my laundry, you know all the important stuff.

 

[jenr812]

Huh...I had no idea...

 

[N.Bailey]

My guess would be that the year your sister was born, your parents were able to claim her for that entire year even though she was only alive for less than 2 months that year.

I think it sucks too, but I do think that's the reasoning.

edit: To rephrase that a bit, I do realize the tax credit only happened in the past few years or so, so technically, your parents didn't get that credit when your sister was born (I know, I have a 14 (born December) and 15 year old (born November) that didn't either), but I think they had to come up with a cut off and I think it was for the reasons above. I agree that it sucks and we all got cheated a year, but I think that's their reasoning.

 

[NewJersey]

I never learned in my tax class 2 semesters ago why it ends at 17, but my guess would be because you have the credit in year 0 (before you turn 1) so that makes up for year 18. Just my hunch though.

 

[DawnCt1]

One can claim a child as a deduction through the age of 22 or 23. A child tax credit is usually for child care. I am assuming that a 17 year old no longer requires baby sitting.

 

[NewJersey]

One can claim a child as a deduction through the age of 22 or 23. A child tax credit is usually for child care. I am assuming that a 17 year old no longer requires baby sitting.

The child tax credit is actually intended for middle and low income households to provide relief for families with children, as it's phased out for AGI above 100,000 for joint filers and 75,000 for single (phased out $50 for each 1,000 of AGI above the threshold). There's a seperate credit for the child and dependent care expenses. You can only claim a child as a dependent over the age of 18 if they are a full time student (in which case you can be under 24).

Ah, taxes make me sleepy.

 

[DawnCt1]

The child tax credit is actually intended for middle and low income households to provide relief for families with children, as it's phased out for AGI above 100,000 for joint filers and 75,000 for single (phased out $50 for each 1,000 of AGI above the threshold). There's a seperate credit for the child and dependent care expenses. You can only claim a child as a dependent over the age of 18 if they are a full time student (in which case you can be under 24).

Ah, taxes make me sleepy.

Well with a little luck she had someone prepare her taxes that assumes the "additional tax" for mistakes that they make. Of course, I wouldn't be that lucky.

 

[tar heel]

The child tax credit is NOT for dependent care.

I'm truly surprised Dawn doesn't know about this credit since it was a major element of Bush's tax program. When it was raised from $600 a year to $1,000 a year, people who qualified were even sent the $400 in the fall to stimulate the economy.

 

[DawnCt1]

The child tax credit is NOT for dependent care.

I'm truly surprised Dawn doesn't know about this credit since it was a major element of Bush's tax program. When it was raised from $600 a year to $1,000 a year, people who qualified were even sent the $400 in the fall to stimulate the economy.

I do recall that. We didn't qualify so it didn't affect us. Obviously it was helpful to many since the economy is doing great. I am glad that you thought to give President Bush credit.

 

[N.Bailey]

The child tax credit is NOT for dependent care.

I'm truly surprised Dawn doesn't know about this credit since it was a major element of Bush's tax program. When it was raised from $600 a year to $1,000 a year, people who qualified were even sent the $400 in the fall to stimulate the economy.

True, but people were only sent a $400 per child advancement on that year's tax return. So, the year it was increased to $1000, you could only receive an additional $600. Many people get that confused saying Bush gave extra monies out, but that's simply not true as it was simply an advancement. I'm not saying you were among those that said it, but many did and still do.

I don't understand the personal attack against Dawn though. I'm sure Bush has done many things that everyone isn't familiar with.

 

[tar heel]

That was a personal attack?

Dawn loves Bush, he made a really big deal about this wonderful thing he did for middle class Americans, and I was surprised she didn't remember it. I gave Bush "credit" b/c he took the credit -- if you were eligible, you got a letter saying you would get $400 b/c of President Bush. There were people on the DIS boards at the time thanking him for their $400. I could just as easily have added that I credit him with raising the deficit with this move.

In the spirit of full disclosure, especially since I mentioned the deficit, I do know that the child tax credit program was a Clinton administration program. It was even already scheduled to rise -- Bush just accelerated the schedule.