The child tax credit is one of the taxes issued in some continents that depend on the number of dependent kids in the family. The child tax credit depends on various factors; but majority depends on the income level of the family of the child. The credit can be claimed under dependent care expenses or credit for child. So, if you have dependent child your tax can be reduced up to mega thousand bucks.
However; the child tax credit seems to be changing as per new laws and the latest child tax credit for 2013 is scheduled to be reduced to couple of hundreds per child. So, how it works? Let’s find it out. However; this child tax credit is phased out for the tax payers those who are above certain threshold that are predefined in 26 U.S.C Sec.
- The person with at least one dependent kid who files Federal tax return can get up to some hundred bucks on every child. So, if you have more than one you can assume how much you can save on it.
- The child should be in relation to the tax payer as a daughter, son, step child, foster child and adopted child.
- Secondly, to qualify for this child tax credit, your kid’s age should be less than 17 years.
- The child must not file a joint tax return with her or his spouse.
- The child should be meeting all the criterions to be claimed as a dependent to the tax payer.
- Families in which one single person’s earnings are exceeding 75000 per year, and if the couple’s income are exceeding more than 1, 10,000 per year than they are not eligible to claim.
There are number of concerns regarding implementation and changes regarding child tax credit such as individual tax payers, circumstances of the family, divorced or separated etc.
Check here to know more about How Much is The Child Tax Credit for 2013?