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). In order to receive the CTC, your qualifying child must have a social security number.

After tax year 2018, taxpayers can now claim a credit for other dependents which is called the Other Dependent Care (ODC) if they do 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
• $400,000 – The adjusted gross income (AGI) amount that the credit starts being reduced for joint taxpayers
• $200,000 – The AGI amount for all other taxpayers before the credit is reduced

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.