Parents often become accustomed to taking various deductions and credits related to their dependent children. It's good to keep in mind that the tax benefits related to children are gradually removed as the children become older. A case in point, the child tax credit stops once a dependent child turns 17 years old.
One reader who was diligently reviewing her tax return emailed me to ask,
"My husband and I just completed our Federal taxes and we came across something I'm not sure is right. We used Turbo tax and were told that because our daughter turned 17 during the year of 2008, (Dec.3) to be exact we could no longer qualify for the child tax credit. Is that correct? Even if she didn't turn 17 until 2 weeks before the year ended?"In this case, the tax software correctly disallowed the child tax credit for this particular situation. For the purposes of the child tax credit, a dependent qualifies only if they are 16 years old or younger at the end of the year.
Here's some additional age limitations for dependents:
- Age 12: last year to claim child and dependent care credit.
- Age 16: last year to claim the child tax credit.
- Age 19: last year to claim the child as a dependent, unless they are full-time students.
- Age 23: last year to claim the child as a dependent if they are full-time students.
But, why 17 years old? I can’t throw her out of the house at 17. I’m required by law to house and feed her until she’s 18. Why not a child tax credit until 18?
I agree with you Doug. Its sad.
Can anyone answer the question, “why?” Cutting this off at the age of 17 makes no sense.
It’s just another way for them to take more of our money. They’re more than 4 million students that turned 18 before the end of last year and once you add that times $800 to $1000 per child, you can see what the goverment keeps to recover some of their wasteful spending. Lucky for them, they make sure that they are exempted from most of the laws applied to you and me. I never payed attention to it until now. My son turned 17 back in August, so we’re like so many others. And like us, your son or daughter still lives at home and may or may not have a job. If not, you have supported that child all year long and even until the end of this year unless they go to college which only approximately 34% will, the rest will join the work force and the goverment starts taking from themalso. Only those families with the new college student will recover any expenses, which won’t be a lot after you figure that only 11% of those students will actually receive enough scholarship money to cover most of the tuitions, books and extras needed to earn a 4 year degree, the rest comes from your savings, 401K or personal loans and/or student loans. So, only if and when, the people work together and confront the local politions and state representatives to change some of the things that have become costly for more than 73% of americans with chidren in school and living at home, will this be changed.
Another way for the people to be screwed by the people who get Medical Expenses for life,paid by us !!! Most of them have no children at this age so they do not care !! But for our children that we have to pay for medical, prescriptions and everything when it is, already the two most expensive years of their lives, we get stuck trying to figure it out how to pay for SAT test and graduation !! But, when politicians are going to the doctor and get their ED medicine to chase the pages around the cabnit meetings, it’s on us !! Who decided 17 was a good age to do something so STUPIED ?? I did not vote for it, did you ???
I just discovered this myself when I attempted to efile my taxes. My daughter turned 17 this year. My tax return was rejected twice because I was trying to claim the child tax credit before I figured out what the problem was. I am perplexed by this as well. My expenses have not gone down from last year to this year in regard to my daughter, so why should my tax credit?
The child tax credit ends at age 16. At age 17, the child no longer qualifies the taxpayer for the child tax credit.