The government of the United States introduced the Child Tax Credit for the residents of the country. It is one of the strongest tools of the nation which offers tens of millions of families some help along with a breathing room while raising their children. The program has proved to be one of the most effective tools for lowering child poverty. Enacted in 1997, the government has approved $3,600 CTC + $1,400/Person Payment Approved for Americans.
The Child Tax Credit supports families with qualifying children in getting a tax break. Interested individuals might be able to claim the credit even if they do not file a tax return normally. Scroll down the following article to get updates on the required eligibility conditions, payment dates, and more.
$3,600 CTC + $1,400/Person Payment Approved for Americans
The International Revenue Service handles the Child Tax Credit program. $3,600 CTC + $1,400/Person Payment Approved will be provided to American taxpayers who have children below 17 years old. Individuals will qualify for the full amount for each child they earn up to $200,000 if the filer is an individual or $400,000 if the filer is applying jointly. The government has tried to phase out the benefits for people with higher incomes.
The United States Child Tax Credit lowers the total taxes of taxpayers owed on a basis of dollar-for-dollar. This way is better than a deduction of tax, which decreases the total taxable income which leads to smaller savings. The IRS officials provide online tools that let taxpayers figure out if their children or dependents are eligible for the Child Tax Credit benefit.
IRS Child Tax Credit Payment Amount
The officials do not issue the same payment to all beneficiaries. Several factors are considered by the officials to determine the offered amount. In 2021, the government of the United States along with the American Rescue Plan increased the maximum Child Tax Credit to $3,600 for children who were less than 6 years old.
Children who were between 6 to 17 years old were offered $3,000 per child. Did you know that the tax credit amount was up to $2,000 per eligible beneficiary before 2021? The officials are provided a new maximum credit to the eligible taxpayers with a modified AGI i.e., Adjusted Gross Income of:
- $75,000 or less for singles,
- $112,500 or less for heads of household and
- $150,000 or less for married couples filing a joint return and qualified widows and widowers.
Interested individuals will be able to check the modified AGI amount on Line 11 of their 2020 Form 1040 or 1040-SR. Above the mentioned income thresholds, the extra amount higher than the original $2,000 credit — either $1,000 or $1,600 per child — is decreased by $50 for every $1,000 in modified Adjusted Gross Income.
Along with this, the credit is fully refundable for the 2021 tax year. So, eligible families can get it, even if they do not owe federal income tax. Before the 2021 tax year, the refundable amount was limited to $1,400 per child.
Eligibility Criteria to Get $3,600 CTC + $1,400/Person Payment Approved for Americans
The authority has set the eligibility criteria which help individuals know whether they are eligible for the $3,600 CTC + $1,400/Person Payment Approved for Americans or not. The following are the required eligibility conditions to get benefits of the $3,600 CTC + $1,400/Person Payment Approved:
- The dependent must be:
- Interested ones must be less than 17 years old at the end of the year
- The child must have a Social Security number which should also be valid for employment in the United States.
- The dependent must be their half-brother, son, daughter, stepchild, brother, sister, stepbrother, stepsister, eligible foster child, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
- Offer not more than half of their financial support during the year
- The dependent must have lived with the beneficiary for more than half the year
- Individuals must properly claim as the beneficiaries’ dependent on the tax return
- Must not have filed a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or the estimated tax paid
- Must be a citizen, national or resident alien of the US.
Frequently Asked Questions
How to claim the $3,600 CTC + $1,400/Person Payment Approved for Americans?
Interested ones will be able to claim the $3,600 CTC + $1,400/Person Payment Approved for Americans by mentioning the children and other dependents on Form 1040, U.S. Individual Income Tax Return, and providing a completed Schedule 8812, Credits for Qualifying Children and Other Dependents.
What is the IRS Advance Child Tax Credit Payment Date?
It is reported that the next Advance Child Tax Credit will be issued on 13th August 2024.
