What Is Child Tax Credit?
The Child Tax Credit is a tax credit for parents and guardians of children who are under the age of 17. It is designed to provide financial support to families who have children, so they can afford to provide for their child's needs. The Child Tax Credit is available to both U.S. citizens and non-citizens, provided they meet the eligibility requirements.
Who Is Eligible for Child Tax Credit?
The Child Tax Credit is available to U.S. citizens and non-citizens who meet the following requirements:
- The child must be under the age of 17
- The child must be a legal dependent of the taxpayer
- The child must be a U.S. citizen or resident alien
In addition, the taxpayer must have an adjusted gross income of less than $200,000 for single filers or $400,000 for joint filers.
How Much Is the Child Tax Credit Worth?
The amount of the Child Tax Credit is based on the number of qualifying children, the taxpayer's income, and the child's age. For the 2021 tax year, the maximum credit is $2,000 per qualifying child. The credit is refundable, meaning that if the credit amount exceeds the taxpayer's total tax liability, the taxpayer can receive a refund of the difference.
In addition, the taxpayer may be eligible for an additional $1,000 credit for each qualifying child who is under the age of 17. This additional credit is known as the Additional Child Tax Credit and is also refundable.
How Do I Claim the Child Tax Credit?
To claim the Child Tax Credit, taxpayers must complete and submit IRS Form 1040 or 1040-SR. The form must include the taxpayer's and the child's Social Security numbers, as well as other information, such as the child's age and relationship to the taxpayer. The form must also include proof of the child's U.S. citizenship or residency. After the form is completed and submitted, the taxpayer will receive a credit for each qualifying child.
Are There Other Tax Benefits Available for Parents?
In addition to the Child Tax Credit, there are several other tax benefits available to parents and guardians of children. These include the Child and Dependent Care Credit, the Earned Income Tax Credit, and the Dependent Care Assistance Program. Depending on the taxpayer's individual situation, these credits and deductions may provide additional tax relief.
How Can I Find Out More Information About the Child Tax Credit?
To find out more information about the Child Tax Credit, including eligibility requirements, how to calculate the credit amount, and how to claim the credit, taxpayers can visit the IRS website or contact a tax professional.
Conclusion
The Child Tax Credit is a tax credit designed to provide financial support to families with children. It is available to both U.S. citizens and non-citizens who meet the eligibility requirements. The amount of the credit is based on the number of qualifying children and the taxpayer's income. It is a refundable credit, meaning that taxpayers can receive a refund of the difference if the credit amount exceeds their total tax liability. To find out more information about the Child Tax Credit and other tax benefits available to parents, taxpayers can visit the IRS website or contact a tax professional.