You may be able to claim a child tax credit if you have a qualifying child. For 2003, the maximum amount of the credit has been increased to $1,000 for each qualifying child.

A qualifying child is a child who:

• Is claimed as your dependent,
• Was under age 17 at the end of 2003,
• Is your son, daughter, adopted child, descendant of a child, stepchild, or eligible foster child, and
• Is a U.S. citizen or resident.

The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase out begins depends on your filing status, as shown below:

In general, the child tax credit is limited also by the sum of your income tax liability and any alternative minimum tax liability. For example, if the amount of the credit is $600, but the amount of your income tax is $500, the credit ordinarily will be limited to $500. However, there are two exceptions to this general rule. First, even if the amount of your child tax credit is greater than the amount of your income taxes, you may be able to claim an "additional" tax child tax credit for as much as 10% of your earned income greater than $10,500. Second, if you have three or more qualifying children, you may be able to claim an additional child tax credit up to the amount of Social Security taxes you paid during the year, less any earned income credit you receive. If you qualify under both these exceptions, you receive the greater of the two additional amounts.

The total amount of the child tax credit and any additional child tax credit cannot exceed the maximum of $1,000 for each qualifying child. if you received part of the credit as an advance payment in 2003, you must reduce the amount of child tax credit you claim for 2003 by the amount of the advance payment.

Individuals entitled to receive the child tax credit and additional child tax credit may also be eligible to receive the child and dependent care credit and the earned income credit.

Follow your Instructions for Form 1040 or Instructions for Form 1040A and complete the child tax credit worksheet. Certain taxpayers may also have to complete worksheets in Publication 972, Child Tax Credit. Use Form 8812 (PDF) to figure the additional child tax credit and attach it to your return. For more information on the child tax credit, refer to Publication 17 ,Your Federal Income Tax.