In tough times, a little help can go a long way. The Child Tax Credit in the US gives up to $2,000 per child to families with children younger than 17 years old. The part of the credit that can be returned this year is $1,700.
Taxpayers who are qualified and have children under 17 who depend on them can claim this benefit as a non-refundable credit. The “Additional Child Tax Credit” is a way for some taxpayers to get a half refund.
Additional Child Tax Credit
If you are qualified for the Additional Child Tax Credit but can’t use it all because you don’t owe any taxes or owe less than the credit amount, you may still be able to get some of your money back. This can help you a lot with money when times are tough.
- Non-refundable credit: Available for eligible taxpayers with dependents under 17.
- Additional Child Tax Credit: Provides a partial refund if you can’t fully utilize the non-refundable credit.
- Eligibility: Families with children under 17 years old.
People who want to get the child tax credit need to know about certain rules about their income. High-income people can’t get this specific credit. If your income is higher than the limit for your marital situation, you will either get less credit or not get any credit at all.
Child Tax Credit Amounts
If your modified adjusted gross income is $400 or less (if you are married and filing jointly) or $200 or less (for everyone else), you can get a $2,000 child tax credit.
Income Thresholds and Reductions
If your income is more than these amounts, the credit is cut by $50 for every $1,000 you make more than the cap. However, the extra kid tax credit is worth $1,700.
Eligibility for the Child Tax Credit
You can claim the Child Tax Credit for each qualifying child who has a valid Social Security number for work in the United States.
Eligibility Criteria for the Additional Child Tax Credit
To qualify for the credit, your child must meet specific requirements. Here are the key criteria:
- Your child must be under 17 years old.
- The child must be your son, daughter, stepchild, adopted child, brother, sister, half-brother, half-sister, stepbrother, or stepsister.
- The child must be declared as a dependent on your tax return.
- The child cannot file a joint tax return.
- The child must have lived with you for at least half of the year.
- You must have contributed at least half of the child’s support during the last year. If the child supported themselves, they do not qualify.
- Your child must be a U.S. citizen or a resident alien.
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