Child Tax Credit (CTC)

If your child is under 17, you may qualify for the Child Tax Credit (CTC). You can also receive a part of the credit, which is refundable, called the Additional Child Tax Credit (ACTC). To be eligible for the CTC, your qualifying child must have a social security number, have lived with you for more than half the year, and is claimed as your dependent on your tax return, to name a few of the requirements.

After tax year 2018, taxpayers can now claim a credit for other dependents, which is called the Other Dependent Care (ODC), if their dependent does not meet all the requirements of the CTC. It allows you $500 per other dependent.

Here are the credit amounts:

• $2,000 – The maximum CTC amount per qualifying child
• $1,400 – The maximum CTC per qualifying child that can be refunded even if the taxpayer owes no tax
• $500 – The maximum ODC for per qualifying dependent

You qualify for the full amount of the Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than:

• $200,000 – for all other taxpayers before the credit is reduced
• $400,000 – the credit starts being reduced for joint taxpayers

Parents and guardians with higher incomes may be eligible to claim a partial credit.

This entry was posted on Friday, November 20th, 2020 at 7:08 pm and is filed under Credits. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.