As far back as 1998, there has been a tax credit deduction for families with children to help offset the amount of income they owe. It is income governed rather than based on the number of children.
Tax Credits for Families
Families can claim The Child Tax Credit by utilizing online tax software. Some families may be eligible for free federal tax filing. The tax program will notify you if you are eligible to claim free tax filing and valuable tax credits you may be unaware of.
At first it was $400 per child based on income of the family, then increased to $500 in 1999. The Economic Growth and Tax Relief Reconciliation Act of 2001 increased the amount to $500 to be increased gradually to a maximum of $1,000 in 2010.
However, another Act for tax relief in 2003, the Jobs and Growth Tax Relief Reconciliation Act plus expansions under both President Bush and President Obama, increased the amount to $1,000 per child.
Finally the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2012 made the deduction stable at $1,000 per child. The current negotiations over the “Fiscal Cliff” problems that have been so publicized lately could have cut that deduction in half if the Child Tax Credit had not been extended. This would have not been good news for families who have benefited by this deduction.
Congress Extends Valuable Family Tax Credit for Five More Years
The news is good however, and the Child Tax Credit Deduction has been extended again for another five years! It applies to all eligible children 16 and under for families that make under $130,000 yearly. Full credit is given to those families under the ceiling of $110,000 income per year, and then adjustments per every $1,000 over that amount to the ceiling income amount of $130,000.
The children eligible can be children of any relationship in the family that are being cared for in the home more than half the year and given more than half of their support. Adopted, step and foster children are all eligible.
Tax Filing Forms for Tax Credits for Children
If you don’t know how to claim The Child Tax Credit you don’t have to worry about a thing. Tax software can assist you with all of your tax filing needs.
You will be asked simple questions which are easy to understand and the tax program will go to work for you putting your answers into the correct tax form boxes for you. You are guaranteed the biggest tax refund possible and you will not miss out on any tax credits coming your way.
File your tax return today with Easy Income Tax Filing Online by visiting http://www.easyincometaxfilingonline.com/ .