Child Tax Credit
Definition of Child Tax Credit:
Reduces tax bill on Dollar-to-Dollar Basis. It can bring tax bill to zero. You might get a refund.
Eligibility Requirements:
• You must have provided at least half of the child’s support during the last year, and the child must have lived with you for at least half of the year.
• The child cannot f ile a joint tax return.
• The child must be 17 or younger.
CTC can reduce the tax bill if meet requirements:
• Age
• Relationship
• Support
• Dependent Status
• Citizenship
• Length of Residency
• Family Income
How to qualify:
• A dependent child must be 12 or younger at the t ime the childcare is provided.
• Spouses and other dependents don’ t have an age requirement, but IRS rules say they must have been physically or mentally incapable of self - care and must have lived with you for more than half the year.
• If you’ re married, you must f i le as married f i l ing jointly.
• You must have earned income — money you earned from a job. Investment or dividend income doesn’ t count.
• You must provide the care provider ’s name, address and Taxpayer Identification Number — either a Social Security number or an Employer Identification Number.
Income and Age limits:
|
Family upper-Income Qualification Limit |
Dependent Age Qualifications |
||
|
Filing Status |
AGI |
Age |
Qualified |
|
Single |
$240,000 |
5 and youngers |
Up to $3,600 |
|
Head of the Household |
$240,000 |
6 to 17 |
Up to $3,000 |
|
Married Filing Jointly |
$440,000 |
Age 18 |
$500 |
|
|
Age 19 to 24, (full time college students) |
$500 |
|
You can’t claim if:
• Your spouse
• A parent of the dependent child
• A dependent listed on your tax return
• Your child who is age 18 or younger, even if they’re not listed as a dependent on your return.
Want to know more about Child Tax Credit or accounting services. Connect with our team by filling the below form or you call us on (+1) 718-426-4661 or email us on baggarwal@aggarwalcpa.com
