Child Tax Credit

Important Changes

Child tax credit increased. For 2003, the maximum child tax credit is increased to $1,000 for each qualifying child. But you must reduce your credit by any advance payment you received in 2003.

Advance payment of child tax credit. Advance payments of the increase in the child tax credit were made to some individuals in 2003. If you received an advance payment, you will need to reduce the credit you can claim on your return by the advance payment you already received. The amount of your advance payment (before offset) is shown on Notice 1319. This notice was mailed to you in 2003 if you received an advance payment.

Qualifying Child

A qualifying child for purposes of the child tax credit must be all of the following.

1) Under age 17 at the end of 2003.

2) A citizen or resident of the United States.

3) Claimed as your dependent.

4) Your:

    a) Son, daughter, adopted child, stepchild, or a descendent of any of them (for example, your grandchild),

    b) Brother, sister, stepbrother, stepsister, or a descendent of any of them (for example, your niece or nephew)
        if you care for the individual as you would your own child, or

    c) Eligible foster child.

Limits on the Credit

For 2003, you must reduce your child tax credit if either (1) or (2) applies:

  1. The amount on line 43 (Form 1040) or line 28 (Form 1040A) is less than the credit. If this amount is zero, you cannot take this credit because there is no tax to reduce. But you may be able to take the additional child tax credit.

  2. Your modified adjusted gross income (AGI) is above the amount shown below for your filing status.
  • Married filing jointly – $110,000.

  • Single, head of household, or qualifying widow(er) – $75,000.

  • Married filing separately – $55,000.


Use the worksheet and Form 8813 in the tax package to compute your Child Tax Credit. You can use Form 8812 for the additional child tax credit.

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