The child tax credit amount is $1,000 for 2004 for each qualifying child. To qualify, the child must be:

1. The taxpayer’s biological or adopted child, stepchild, descendant, or eligible foster child;

2. Under age 17 at the close of the tax year;

3. A U.S. citizen or resident alien; and

4. Claimed as a dependent on the taxpayer’s return. 

The taxpayer must include the child’s name and taxpayer identification number on the return to take the credit.

The child tax credit is reduced by $50 for every $1,000 or fraction thereof of modified AGI in excess of:

The child tax credit may be claimed against both the regular income tax and the alternative minimum tax.

The child tax credit is scheduled to drop to $700 in 2005-2008; increase to $800 for 2009; increase to $1,000 in 2010; and drop to $500 in 2011 and after.