The government has a program called the Child Tax Credit (CTC) that helps families with children who are living in poverty or income levels fall under low and extremely low income tax brackets. The CTC gives these families a tax credit, which is money that they can use to help pay for things like food, clothing, and housing. The CTC is an important part of the government's poverty policy because it helps to make sure that children have the basic necessities, they need to live healthy lives.
The Child Tax Credit is a valuable tool for families with young children. The Child Tax Credit is a non-refundable credit, meaning that it can only reduce the amount of taxes owed and cannot result in a refund check from the IRS. However, there is also a refundable portion of the credit, called the Additional Child Tax Credit, which may result in a refund for some taxpayers. The amount of the child tax credit is based on income and varies from year to year. To qualify for the refundable portion of the credit, taxpayers must have earned income of at least $3,000 during the tax year. The child tax credit is a refundable tax benefit claimed by filing Form 1040 and attaching Schedule 8802 to the return.
If you owe additional taxes, you will need to pay them when you file your return. If you are due a refund, the IRS will send you a check for the amount of the credit plus any other forms that you are entitled to receive.
Due to the Covid 19 Pandemic, The American Rescue Plan Act, was passed in March of 2021, it included a provision for direct payments to families with children. The program, called the Child Tax Credit and Advanced Child Tax Credit, allowed families to receive up to $3,600 per child under the age of 6 and $3,000 for children ages 6-17. This is a significant increase from the previous credit of $2,000 per child. That provision also provided much needed financial assistance to families that were not already qualifying to receive the credit because there was no cap on the amount of money you earned to disqualify you.
Unfortunately, that provision has phased out and is NO LONGER active. For the tax year 2022 that will be filed during the year 2023, The United States government will be providing a tax credit for children under the age of 17. The Child Tax Credit is a refundable credit, which means that it can be used to offset taxes owed. The credit is worth up to $2,000 per child and can be claimed on both state and federal taxes. The credit is available to both single and married parents, as well as adoptive and foster parents. To qualify for the credit, parents must have a Social Security number for each child and must fit the qualifications in order to claim the child. You must also have earned income from working; this can include wages, salaries, tips, self-employment income, and long-term disability benefits. The advanced child tax credit is no longer available.
The expansion of the Child Tax Credit is an important step in addressing child poverty in the United States. It is also a recognition of the importance of investing in our future by ensuring that all children have a fair start in life.
Commenti