To put it simply, the Child Tax Credit is a tax credit for American taxpayers with children under 17. In this article, read and find out what a child tax credit is and how to qualify for it!The Child Tax Credit (CTC) is a federal tax credit that provides financial assistance to American taxpayers with children under the age of 17. To be able to claim the tax credits, upon filing taxes, a taxpayer must provide proof to the Internal Revenue Service (IRS) that their child meets the eligibility criteria. This means that the taxpayer must also prove that their income meets the specific limitations. This is because if the taxpayer’s adjusted gross income exceeds the limit, the tax credit to be received may be reduced or be completely ineligible.
According to NerdWallet, those who are qualified to claim the tax credit may receive up to $2,000 per eligible dependent upon filing their 2022 tax returns. In addition, $1,500 of the tax credits may be refundable. This means if for example, a taxpayer owes $1,000 in taxes, they would receive a $500 refund.
Who is qualified for this tax credit?
According to NerdWallet, to be eligible for this tax credit, a taxpayer’s child must be under the age of 17 by the end of 2022. Most importantly, the child claimed may be the taxpayer’s biological child, stepchild, foster child, sibling, half-sibling, stepsibling, or a descendant of any of the mentioned people such as a grandchild, niece, or nephew. The taxpayer must also be living with the child for at least half a year and must have provided at least half of the child’s needs in the last year.
Furthermore, the child must also be a U.S. citizen, national, or resident alien and must possess a valid Social Security number. Lastly, the taxpayer must properly claim the child as a dependent. The child cannot file jointly unless a refund of withheld income taxes or estimated taxes paid is needed to be filed.