1998 Tax Help Archives  

Publication 553 1998 Tax Year

Chapter 1
Tax Changes for Individuals

This is archived information that pertains only to the 1998 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Child Tax Credit

The child tax credit is a new credit that can reduce your tax. You may be able to take a credit on your tax return of up to $400 for each qualifying child.

Qualifying child. A qualifying child is:

    1) Under age 17,
    2) A citizen or resident of the United States,
    3) Someone you can claim as a dependent, and
    4) Your:
        a) Son or daughter,
        b) Stepson or stepdaughter,
        c) Grandchild, or
        d) Eligible foster child.

Amount of credit. For 1998, the maximum credit you can claim is $400 for each qualifying child.

You must reduce the credit if either of the following apply.

  • Your modified adjusted gross income is above a certain threshold amount.
  • Your tax liability is less than the credit. However, see Additional child tax credit, later.

Modified adjusted gross income. For purposes of the child tax credit, modified adjusted gross income is generally the amount on line 34 of Form 1040 or line 19 of Form 1040A.

If your modified adjusted gross income is more than the amount shown in the table below, you must reduce the credit.

Filing Status Threshold Amount
Single, head of household, or qualifying widow(er) .... $75,000
Married filing jointly .................................................... 110,000
Married filing separately ............................................. 55,000


Claiming the credit. You must file Form 1040 or Form 1040A to claim the child tax credit. Fill out the child tax credit worksheet that is included in the form instructions.

You must provide the name and identification number (usually a social security number) of each qualifying child on your tax return.

Additional child tax credit. You may be able to take the additional child tax credit if you have three or more qualifying children. The additional child tax credit may give you a refund even if you do not owe any tax. To claim the additional credit, you must complete the child tax credit worksheets in the instructions for Form 1040 (or Form 1040A) and 8812, Additional Child Tax Credit.

More information. For more information on the child tax credit, see the Instructions for Form 1040 or the Instructions for Form 1040A.

Previous | First | Next

Publication 553 | 1998 Tax Year Archives | Tax Help Archives | Home