Everything You Need to Know About Child Tax Credit!March 1, 2023
How much do you get back in taxes for a child thanks to child tax credit? To answer that, here is all you need to know about child tax credit.
Come tax time, you need to take advantage of all the tax credits you qualify for. One of the most beneficial tax credit you can take advantage of is the child tax credit. This tax credit is given to families to help offset the cost of taking care of the child(ren). Families as well as single parents can claim this tax credit when filing their tax returns and that can help them reduce their tax bill or even get a huge tax refund. To help you understand more about child tax credit, here is everything you need to know about it.
How much is child tax credit?
The main aim of child tax credit is to help families take care of costs associated with taking care of dependents. This tax credit can be claimed for up to 3 qualifying children. According to the new tax changes, the child tax credit is worth $2, 000 per qualifying child. How much do you get back in taxes for a child 2020? This question is asked by many taxpayers, and here is the simple answer. The refundable portion of the credit is limited to $1,400, but it can reduce your tax bill by up to $2,000 per qualifying child.
If you have a child or a dependent child, you can claim the child tax credit. The child must be under 17 years, and you must claim the child as a dependent. More to that, you must be related to the child by blood, or have a step relationship. Besides that, a qualifying child can be a legally adopted child. In addition, you must have provided financial support to the child and lived with the child for at least half the tax year. The tax credit phases out at $200,000 and $400,000 for single taxpayers and joint taxpayers, respectively.
Why is child tax credit important?
The most important thing about child tax credit 2020 is that it will help you reduce your tax bill dollar for dollar come tax season. If your tax credit and withheld are more than what you owe the IRS, you can get a tax refund which can help you sort some of your bills.
Easy way to claim child tax credit?
When you file your tax returns, you need to claim all the tax credits you qualify for. You should avoid the stressing paperwork, manual process and opt for online tax filing process. When you file your taxes online, you will easily include child tax credit, among other tax credits you qualify for in the whole process. That way, you will ensure the child tax credit counts and can even allow you to get the biggest tax refund from the IRS.
Child tax credit is one of the most important tax credits you need to take advantage of. The credit can help lower your tax bill or even allow you to get a bigger tax refund come tax season. Therefore, if you have a qualifying child or children, claim this tax credit come tax season.