What’s the difference between the child tax credit and a dependent exemption?
An exemption will directly reduce your income. A credit will reduce your tax liability.
A dependent exemption is the income you can exclude from taxable income for each of your dependents. In 2019, you can exclude $4,200 for each dependent.
The child tax credit:
- Is a credit that offsets the tax you owe dollar for dollar
- Is available if you have a child younger than age 17 at the end of the year
- Can reduce your tax by as much as $1,000, (2003 – 2019, through the Working Families Tax Relief Act) for each qualifying child
You can only claim the child tax credit if you claim the child as a dependent.
If you meet the requirements, you can claim an exemption for a dependent on your return and the child tax credit for that dependent.
Not all online tax prep is the same. Find out why H&R Block’s Tax Pro Go offers more full-service experience than TurboTax Live.
Get a better understanding of taxes for immigrants, expats and green card holders. This guide helps answer basic questions about special filing circumstances.
Need to attach documents to your e-filed return? Find out from the tax experts at H&R Block about how Form 8453 is used to e-file your return.
Looking for information on the Arizona income tax rate? Read here to learn more about state income taxes in Arizona with the H&R Block tax pros.