During times of trouble in the US, a little help can go a long way. With up to $2,000 per eligible child, the Child Tax Credit gives families with children under 17 a lot of needed financial help. This year, the part of the credit that can be refunded is $1,700, which will help a lot of families.
What is the Child Tax Credit?
The Child Tax Credit is a credit that can not be returned and is given to people with children who depend on them. It is an important source of cash support, especially when the economy is bad.
Each child who meets the requirements and has a legal Social Security number to work in the United States can get the credit.
Additional Child Tax Credit
If a family does not need to use the full Child Tax Credit because they do not owe any taxes or owe less than the credit amount, they can get a partial return through the Additional Child Tax Credit. Families who qualified can get a lot of help with their finances from this benefit.
Eligibility Requirements
Families must meet certain income requirements in order to get the Child Tax Credit. Credit is not open to people who make a lot of money. Here is a list of the requirements to be eligible:
- Non-refundable Credit: Families with dependents under 17 years old can claim up to $2,000 per child, contingent upon their modified adjusted gross income. Married couples filing jointly must have an income of $400,000 or less, while all other filers must earn $200,000 or less.
- Income Thresholds and Reductions: If a taxpayer’s income exceeds these limits, the credit is reduced by $50 for every $1,000 over the threshold.
- Requirements for Additional Child Tax Credit:
- The child must be under 17 years old.
- The child must be a son, daughter, stepchild, adopted child, sibling, or half-sibling.
- The child must be declared as a dependent on the taxpayer’s return.
- The child cannot file a joint tax return.
- The child must have lived with the taxpayer for at least half of the year.
- The taxpayer must have provided at least half of the child’s support during the previous year.
- The child must be a U.S. citizen or resident alien.
Conclusion
Families all over the United States depend on the Child Tax Credit and the Additional Child Tax Credit for important cash help.
Families can use these benefits to improve their financial safety during hard times if they know what they need to do to be eligible and what the income limits are. Taxpayers can find out more by going to the IRS website or talking to a tax agent.
Also see:-Social Security Confirms First Payment to Retirees, and Checks Will Be Bigger – It is official
