A little assistance can go a long way in a moment of trouble. In the United States, the Child Tax Credit provides up to $2,000 per child for households with dependents under the age of seventeen. This year’s refundable part of the credit is $1,700.
This is a non-refundable credit that qualifying taxpayers with dependent children under 17 can claim. Some taxpayers may be eligible for a partial refund called the “Additional Child Tax Credit”.
Additional child tax credit
If you qualify for the Additional Child Tax Credit but are unable to completely utilize it because you owe no taxes or less than the credit amount, you may be entitled for a partial refund. This can bring substantial financial help during difficult times.
- Non-refundable credit is available to qualifying taxpayers who have dependents under the age of 17.
- Additional Child Tax Credit: A partial refund is available if you are unable to fully utilize the non-refundable credit.
- Eligibility: Families with children under the age of 17.
Those seeking to qualify for the child tax credit must be aware of certain income requirements. Individuals with high salaries cannot qualify for this credit. If your income exceeds the marital status level, your credit amount will be reduced or rendered ineligible.
Child Tax Credit Amount
The child tax credit is $2,000 if your modified adjusted gross income is $400 or less (married couples filing jointly) or $200 or less (all other taxpayers).
Income limits and reductions
If your income exceeds these limits, the credit is decreased by $50 for each $1,000 above the threshold. However, the additional child tax credit is valued at $1,700 according to source.
Eligibility for Child Tax Credits
You can claim the Child Tax Credit for each qualifying child with a valid Social Security number who works in the United States.
Eligibility Criteria for Additional Child Tax Credit
To be eligible for the credit, your child must complete certain standards. Here are the important criteria.
- Your youngster must be under 17 years old.
- The child has to be your son, daughter, stepchild, adoptive child, brother, sister, half-brother, half-sister, stepbrother, or stepsister.
- The youngster must be listed as a dependent on your tax return.
- A joint tax return cannot be filed by a child.
- The youngster must have stayed with you for at least half of the year.
- You must have provided at least half of the child’s support throughout the last year. If the
- youngster provides for itself, they do not qualify.
- Your child must be a US citizen or resident alien.