Why do you lose child tax credit at age 17?
As parents, we often rely on tax credits to help alleviate the financial burden of raising children. One such credit is the child tax credit, which provides a tax benefit for each qualifying child under the age of 17. However, once your child turns 17, you lose eligibility for this tax credit. But why does this happen? Let’s explore the reasons behind losing the child tax credit at age 17 and address some related FAQs.
1. Why does the child tax credit end at age 17?
The child tax credit aims to assist families with the costs associated with raising dependent children. However, as children become older and more independent, their financial needs change, leading to the discontinuation of the credit at age 17.
2. Can I claim the child tax credit if my child is 17 at the beginning of the tax year?
No, unfortunately, you cannot claim the child tax credit if your child turns 17 at any point during the tax year. The credit only applies to children under the age of 17 throughout the entire year.
3. Are there any exceptions to the age limit for the child tax credit?
Yes, there is one exception: if your child is permanently and totally disabled, you can continue claiming the child tax credit, regardless of their age.
4. Can I receive any other tax benefits after my child turns 17?
While you might lose eligibility for the child tax credit at age 17, there are other tax benefits you may be able to claim, such as the dependent care credit or education-related tax credits.
5. Are there any financial benefits for parents of older children?
Although the child tax credit may no longer be available, parents may qualify for the credit for other dependents, which offers a smaller tax benefit for older children and other dependents who meet certain criteria.
6. What is the credit for other dependents?
The credit for other dependents is a tax credit that parents can claim for dependents who do not qualify for the child tax credit. This credit provides a modest tax benefit for dependents who are older than 17 or do not meet the child tax credit criteria.
7. Can I claim my child as a dependent after they turn 17?
Yes, you can still claim your child as a dependent on your tax return if they meet the IRS criteria for a qualifying relative, even if they are over 17 years old.
8. What happens to the child tax credit after my child turns 17?
Once your child turns 17, the child tax credit is no longer available. However, you may still qualify for other tax benefits to help lessen the financial impact of raising a child.
9. Can I claim the child tax credit for my 18-year-old who is still in high school?
No, you cannot claim the child tax credit if your child is 17 or older, even if they are still attending high school.
10. Do I need to provide my child’s Social Security number to claim the child tax credit?
Yes, to claim the child tax credit, you must provide your child’s Social Security number on your tax return. This ensures the IRS can verify your child’s eligibility for the credit.
11. Is the child tax credit refundable?
Yes, a portion of the child tax credit is refundable. If you qualify for the refundable portion, you may receive a tax refund even if you owe no taxes or have a lower tax liability.
12. Can I still claim the child tax credit if I adopt a child after they turn 17?
No, you cannot claim the child tax credit for a child you adopt after they turn 17. The child tax credit is only applicable to children who are under 17 at the time they become a qualified dependent.
While it may be disappointing to lose the child tax credit at age 17, there are still other tax benefits available to support parents financially. Understanding these changes and seeking out alternative credits can help ensure you receive the appropriate tax relief as your child grows older.