A little help can go a long way in times of crisis. In the United States, the Child Tax Credit offers up to $2,000 per child for families with dependents under 17 years old. This year, the refundable portion of the credit is $1,700.
This benefit is a non-refundable credit that eligible taxpayers with dependent children under 17 can claim. Some taxpayers may qualify for a partial refund known as the “Additional Child Tax Credit”.
Additional Child Tax Credit
If you qualify for the Additional Child Tax Credit but can’t fully utilize it because you owe no taxes or owe less than the credit amount, you may still be eligible for a partial refund. This can provide significant financial relief during tough times.
- 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.
Those looking to apply for the child tax credit need to be aware of specific income rules. This credit is not available to individuals with high incomes. If your income exceeds the threshold for your marital status, the amount of credit you receive will decrease or become ineligible.
Child Tax Credit Amounts
The child tax credit amounts to $2,000 if your modified adjusted gross income is $400 or less (for married couples filing jointly) or $200 or less (for all other filers).
Income Thresholds and Reductions
If your income surpasses these limits, the credit is reduced by $50 for every $1,000 over the threshold. However, the additional child tax credit is valued at $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.
