WPBN: The United States of America is getting ready to file its tax returns for the year 2024 as tax season draws near. It is possible that the procedure of filing taxes will become more complicated for parents and guardians as compared to paying taxes on your own or jointly with a spouse.
This complexity, on the other hand, may come with the potential benefit of being eligible for a number of new tax credits and deductions, all of which are contingent on the amount of income you have.
As a result of the large savings it provides, the Child Tax Credit has emerged as an essential component of policy for a great number of families in recent years. If you are able to properly qualify for this credit, you will be able to maximize the benefits you receive on your taxes in 2024.
In 2024, the highest tax credit that may be claimed by each child that is eligible is $2,000 for youths under the age of 17.
What you need to know about the Child Tax Credit in 2025?
Furthermore, the refundable element of this credit, which is popularly referred to as the extra child tax credit, enables you to receive a maximum of $1,700 for each kid who meets the requirements.
There are several requirements that you need to fulfill in order to be eligible for the Child Tax Credit. To begin, you need to declare that you are a parent or guardian, and then you need to pay your taxes in the year 2025.
The Internal Revenue Service (IRS) has precise rules that must be understood in order to ensure that your kid or dependent satisfies the qualifying criteria for tax benefits.
In order to begin, it is necessary for your child to have a Social Security number that is valid for employment in the United States. A further requirement is that they must be younger than 17 years old by the time the calendar year comes to a close.
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Qualifications Required for Dependents to Be Eligible
The following requirements must be satisfied in order for your child or dependent to be eligible:
- They should be your son, daughter, stepchild, foster child who is eligible for adoption, brother, sister, stepbrother, stepsister, half-brother, half-sister, or any descendant such as a niece, nephew, or grandchild.
- During the course of the tax year, they are not permitted to contribute more than fifty percent of their own financial assistance.
- It is necessary for them to have resided with you for a period of time that is greater than fifty percent of the tax year.
- Your tax return must include a claim for them as a dependent in the appropriate manner.
- They are not permitted to file a joint return with their spouse for the tax year, unless the sole purpose of the filing is to obtain a refund of income tax that was withheld or estimated tax that was paid.
- In order to qualify, they must be a citizen, national, or resident of the United States.
There is a possibility that the value of the child tax credit, as well as any supplementary tax credit, will fall if the gross income of the parent or guardian surpasses specified levels.
To be more specific, the credit will begin to be phased down if your gross income is greater than $200,000 for individuals who are doing their taxes alone or $400,000 for those who are filing jointly with their spouse.
