You've claimed the exemption. Don't forget the Child Tax Credit

Taxpayers with children can claim a credit of up to $1,000 for each qualifying child. The Child Tax Credit is claimed on line 51 of Form 1040 as a nonrefundable credit . Taxpayers can use this credit up to the amount that reduces their income tax to zero.

A qualifying child for this credit is someone who meets the qualifying criteria of all six tests:

1. Age - must be under age 17 – age 16 or younger – at the end of the year.

I lost my home. Now I received a 1099 from my mortgage lender

People who lose their homes in foreclosure, abandon them or give them back to their lenders will receive a Form 1099-C Cancellation of Debt because the lender has forgiven a portion of the debt.

The forgiven amount is the difference between the amount owed on the mortgage and the value of the home. Prior to 2007, consumers had to pay federal taxes on the forgiven amount.

Can I claim my child as a dependent?

To claim someone as a dependent that person must either be your qualifying child or qualifying relative.

To be a qualifying child:

1. The child must be related to you.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student, (c) any age permanently and totally disabled.
   
   A child is permanently and totally disabled if both of the following apply.
   
   • He or she cannot engage in any substantial gainful activity because of a physical or mental condition.
   • A doctor determines the condition has lasted or can be expected to last continuously for at least a year or can lead to death
3. Child must live with you more than six months.