What is the child tax credit?
Taxpayers claiming the child tax credit have the option of taking a few different amounts for their child. You can get the full credit amount if you are a single filer with no other qualifying children. In that case, your check for the full amount of the credit, up to $1,000 per qualifying child, will arrive in February 2019. Or, you can get a smaller amount if your income is low enough. Under the current tax rules, you can claim a maximum credit of $1,000 per qualifying child under age 17. The benefit phases out gradually over the course of the year. In the first year, you can get up to $1,050 per qualifying child. In the second and third years, you can claim up to $1,400 and $1,650, respectively.
How does the child tax credit work?
The child tax credit is based on a “broad, two-year-old Child Tax Credit law,” according to Chad Stone, a senior fellow at the Center on Budget and Policy Priorities. For most people, it’s an extra bit of money to help them or a family member with buying food, school supplies or tuition. “In 2018, it’s about $1,400, which is just a smidgen of what you’d get from the first iteration of the Republican bill, which expired in January,” said Stone. One adult (can be you or a spouse) is required to claim the child. For example, if you’re a single parent and both your parents claim you as a dependent, you can’t take the child tax credit. You can’t take it for your disabled children either.
Who qualifies for the child tax credit?
No matter who you are or what you do, there are some conditions to consider before you claim the child tax credit, said Mark Steber, chief tax officer at Jackson Hewitt. “Make sure you have a dependent and make sure you’re eligible for a dependent,” he said. “Do not file because you think you might be eligible — it’s a huge mistake.” Generally speaking, if you meet the conditions, you can claim the child tax credit, and here’s a few more qualifications to know: You must have a “home, car or other substantial depreciable property” and an “aggregate adjusted gross income that is not more than $100,000 ($50,000 if you’re married and filing jointly).” You can’t claim it if you’re in prison or on active duty in the military.
How to get the child tax credit in your state?
Most people don’t get the child tax credit, but 13 states do give out child tax credits to their residents. Check out WalletHub’s full list of state-by-state calculations. Should you get the child tax credit or make the first child’s tuition payment? At the moment, making the tuition payment might seem like a better idea. Although you don’t get a child tax credit unless your child’s dependent, you’ll only get a $4,000 credit, whereas the $4,000 tuition assistance is a deduction. How to get the child tax credit The deadline to file your taxes is April 17. That means you need to file by the end of the day.
How to claim the child tax credit?
In the filing season, only the tax credit amount is allowed to be claimed. More: The child must be your dependent, and, if not, you must have a dependent in the household. If you claim the credit, you must complete Form 8880, the Child Tax Credit Affidavit. You must fill out two sections of it. The first, Form 8963, has the federal and state tax information required to file the return. Form 8962 is to certify your dependent. You must include the child’s name, Social Security number and date of birth, and the type of support you provided (see footnote for example). If your child lives with you for more than half the year, you must include more information. On the state form, you must include a parent/guardian name and address, and the number of dependent children.
The Tax Cuts and Jobs Act has been a major win for families, and this is one of the benefits that we now know about. With so many families now receiving more money in their paychecks, many can find more money to invest in their own future, so that they can avoid the terrible plight of bankruptcy and a lifetime of poverty. “> Nearly 30 million working families will receive at least some money from the new tax law, even if they are still confused about it. This is particularly true in light of President Trump signing it on Dec. 22, the traditional deadline to take advantage of the law. But, that’s not all. It is possible for some people to receive more money than they pay in taxes. The more time people spend thinking about it, the more money they could receive. That’s the good news.