The child tax credit is the amount credited to the families, mostly from western countries that possess dependent children. There are also some other parameters for receiving this tax such as the number of children, the gross income of the family etc. The amount varies regarding countries. Not necessarily all the countries have the same amount. These are mainly entertained by the government of developed countries to support the underprivileged families. Regrettably most of the peoples from third world countries don’t have such supports.
The basics of this credit and general decline of it
Though this tax credit is a kind of benefit to the families, they have to maintain certain rules set by the governments. There are certain rules. To get this benefit the person or the families have to produce their child as dependent. Though it must be kept in mind that all dependent child is eligible for this credit. In case the family shows their income by reducing the amount the credit tax will not be available. The child need not be the own child of the family or the person but they are to stay at least one year with the family. Now a days there is a trend that the amount is being decreasing day by day.
Child tax credit for 2013
The amount of child tax will drop by almost half. The US president has announced a cut in the child tax credit for 2013. The existing tax will also be converted to the same amount. But there are some other facilities which the US government is providing such as higher education tax credit, higher education tuition deduction etc. Since the child tax credit is a tax relief, the government is planning to reduce it. There is an important distinction to be made between the child tax credit and its refundable provision, the additional child tax credit.