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What's the Child Tax Credit? What You Need to Know and How it Works

The Child Tax Credit is a federal tax credit that allows parents to receive up to $2,000 for each of their children under age 17. It's designed to help families with children who might not be able to work or attend school due to special circumstances like disability or care-giving. The Child Tax Credit can lower your taxes and provide you with much needed relief. The credit also goes toward the expenses that you incur while raising your child like childcare, education, and other living expenses. Here are some things you should know about the Child Tax Credit so that you can make the most of it.

What is the Child Tax Credit?

The Child Tax Credit is a federal tax credit that parents can claim against the expenses they incur while raising their child—including education and childcare. It's designed to help families with children who might not be able to work or attend school due to special circumstances like disability or care-giving.

The benefits of the Child Tax Credit.

The Child Tax Credit is a federal tax credit that can provide you with much needed relief. Income taxes are just the beginning of what the Child Tax Credit can do for you and your family. Here are some of the other benefits that this credit offers:

Lowers your taxes: If your tax liability is $1000 and you qualify for a $1000 Child Tax Credit, then your tax liability will be reduced to zero.

Helps offset the cost of raising children: The costs associated with raising children can be considerable, so being able to offset those expenses through this tax credit can take a lot of stress off parents' shoulders.

Provides help with childcare, education, and other living expenses: The money from this tax credit can go toward finances like childcare, education, food, clothing, transportation costs, etc.

Saves you time by doing your taxes for you: You don't have to worry about filling out complicated forms or looking up the right codes because TurboTax will do it all for you! Just answer simple questions and TurboTax will create your return.

How to qualify for the Child Tax Credit

There are a number of factors that can determine whether you're eligible for the Child Tax Credit. The IRS has a list of requirements to qualify. These include:

-Your child must be under 17 years old.

-You must have custody of your child for more than half the year or your spouse must have custody of your child for more than half the year.

-Your residence cannot be in Canada, Mexico, or Puerto Rico.

-Your household income cannot exceed $75,000 if married filing jointly, $50,000 if single and head of household, or $37,500 if married filing separately.

There are other conditions that may determine whether you're eligible to receive the Child Tax Credit in addition to these ones. To learn more about how you can qualify for this credit, visit https://www.irs.gov/individuals/child-tax-credit

Who qualifies for the tax credit?

To qualify for the Child Tax Credit, you must file a tax return and meet these requirements:

- Your child was under age 17 at the end of the tax year.

- You're the child's parent (biological, adoptive, step).

- Your income is below a certain amount.

You also need to provide Social Security numbers for your children and their spouses if they had one on December 31 of the tax year.


When do you qualify for the tax credit?

The Child Tax Credit is available for any child who qualifies. The IRS defines qualifying children as children under age 17 who don't provide more than half of their own support during the tax year.

Qualifying children also must live with you for more than six months out of the year, whether or not they are related to you by blood or adoption. This is important because if your qualifying child has a different last name, then he or she will not be able to claim this credit on their own taxes, but could pass it along to you.

Who is not allowed to claim the credit?


The Child Tax Credit is designed to help families with children who might not be able to work or attend school due to special circumstances like disability or care-giving. The credit can lower your taxes and provide you with much needed relief.

If you're not raising a child, you cannot claim the Child Tax Credit.

How much money can you get from this tax credit?

The amount of money you can get from the Child Tax Credit depends on your income and the number of children in your household. For example, if you make $50,000 in one year and have two children, you would be eligible for up to $4,000. If you make $100,000 in one year with three children, you could qualify for up to $6,000.

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