Child Tax Credit - Newly Adopted Children

Sorry, it appears that Child 1 is NOT a qualifying child for the child tax credit since the child did not live with you for more than 6 months in 2006. Rudy

Child #2 born in 2006 is considered to have been living with you for 12 months. Change from 5 months to 12 and see what happens. A child living all of the year after birth is considered to be living for the 'whole' year. Missy Doyle

Child 1 is not your qualifying child (did not live with you for greater than 6 months) and is also not your qualifying relative (assuming you did not provide more than 1/2 support for child 1 based on living with you for only 1 month). So child 1 is not your dependent and cannot qualify you for the CTC. Child 2 is assumed to have lived with you all year (12 months) since child 2 has lived with you since being born during the tax year. So child 2 is your dependent and does qualify you for the federal CTC. Input 12 months for child 2 living with you because the child was born during the tax year.