The Child Tax Credit is a reduction credit; that is, it can reduce the amount of tax that you owe.  If you do not owe any tax, you do not qualify for the credit because you do not have any tax to reduce.  To determine if you can take the Child Tax Credit, first check the amount on line 40 of Form 1040 or line 25 of Form 1040A.  If the amount there is zero, you cannot take this credit.  If you have three or more qualifying children, however, you should still figure out the Child Tax Credit, as you may still be eligible for an Additional Child Tax Credit (see below).

To claim the credit, file Form 1040 or Form 1040A.  Fill out the Child Tax Credit Worksheet, which is included in the form instructions.  Provide a name and social security number (or ITIN--see Form W-7 in checklist) for each qualifying child on your tax return.

For Child Tax Credit purposes, a qualifying child is:
        * under age 17,
        * a U.S. citizen or resident,
        * someone you can claim as a dependent,
        * your daughter or son, stepdaughter or stepson, grandchild, or eligible foster child (lives in your home the whole year).

In 1999, you do not qualify for the Child Tax Credit if you make more than:
        * $75,000 if you file as single, head of household, or qualifying widow(er),
        * $110,000 if you file as married filing jointly,
        * $55,000 if you file as married filing separately.

You may be able to take an Additional Child Tax Credit if:
        * you have 3 or more qualifying children, AND
        * the amount on line 1 of the Child Tax Credit Worksheet is more than $1,500, AND
        * you answered "yes" on line 4 OR line 5 of the Child Tax Credit Worksheet.

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 Worksheet (found in Form 1040 and Form 1040A instructions) and Form 8812.  If you have an additional credit on line 11 of Form 8812, carry that amount to line 60 of Form 1040, or line 38 of Form 1040A.