The Child Tax Credit, also known as CTC, is available for the 2024 tax season and can provide up to $2,000 for each eligible minor. It’s important to note that the Child Tax Credit can generate a refund, depending on the taxpayer’s specific situation. However, for the 2024 tax season, the maximum refund is $1,600 per minor dependent, not the full $2,000.
To be eligible for the Child Tax Credit, a minor must have a valid Social Security number for employment in the United States. Additionally, the minor must have been under 17 at the end of the 2023 tax year, be claimed as a dependent on a tax return, and have lived for more than half of 2023 with the person claiming the credit. Only minors with a Social Security number are eligible for this credit.
Taxpayers can claim the Child Tax Credit if their adjusted gross income (AGI) was $400,000 or less for couples filing jointly, or $200,000 or less in all other cases. If a taxpayer’s income exceeds these amounts, the credit they are eligible for will gradually decrease. To claim at least a portion of this credit, taxpayers must have earned an income of at least $2,500 in 2023.
To request the Child Tax Credit on a tax return, taxpayers must enter the number of children or dependents on form 1040 and attach form 8812, which is called Credits for Qualifying Children or Other Dependents.
The Earned Income Tax Credit (EITC) is also available for the 2024 tax season and the amounts of this credit will change. For tax year 2023, the amounts of this credit are: $600 if you do not have a qualified dependent minor, $3,995 if you have one qualified minor, $6,604 if you have two qualified minors, and $7,430 if you have three or more qualified minors.
To claim the Earned Income Tax Credit, earned income must have been recorded, and income must be within the ceilings set by the IRS. For a person without children, their adjusted gross income (AGI) must have been $17,640 or less. These amounts change depending on the marital status in which the tax return is filed.
To request the Earned Income Tax Credit on a tax return, taxpayers must submit form 1040 and, if they have qualifying minors or children, they must attach the EIC form called Earned Income Credit.
The Credit for the Care of Children or Dependents is available for the 2024 tax season and can provide up to $3,000 for expenses spent caring for a minor or dependent who cannot take care of themselves, and up to $6,000 in expenses for two or more qualified minors or dependents. Depending on the taxpayer’s income, the IRS will give a credit of up to 35% of those amounts.
To be eligible for the Credit for the Care of Children or Dependents, taxpayers must have paid for the care of one or more people qualified to go to work or study full-time, or go out to look for a job, and their income must be within the limits set by the IRS. To claim this credit for money spent on child care, the child must be under 13 years old.
To request the Credit for the Care of Children or Dependents on a tax return, taxpayers must submit form 2441, which is called Child and Dependent Care Expenses, along with the tax return. On that form, taxpayers will have to provide a Taxpayer Identification Number for each qualified person, which is usually the Social Security number.
In conclusion, the 2024 tax season offers various tax credits for families and individuals. It’s important to review the specific requirements and eligibility criteria for each credit with the IRS to ensure that you are able to claim the credits you are entitled to. By understanding the available tax credits and how to claim them, taxpayers can maximize their potential refunds and reduce their tax liabilities.
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