aextra Child tax credit can be very important to many families across the country United States of America.
For those who owe less tax than the available credit, they usually cannot claim the full child tax credit.
However, this may mean they can claim additional refundable child tax credit.
It Additional Child Tax Credit (ACTC) can give parents a chance to lower their tax bill, but also put more money in their pockets to help raise their children and offset the costs that children bring.
According to a 2015 report by the USDA, it costs about $233,000 to cover food, housing, transportation, health care, clothing, child care, education, and everything else a child needs until the age of 17.
How much is child tax credit?
The Standard Child Tax Credit is up to $2,000 per child if these requirements are met;
- The child is under 17 years of age at the end of the tax year.
- A child is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, grandchild, niece or nephew.
- Do you consider the child a dependent?
- The child does not provide more than half of his own support.
- The child lived with you for more than half of the year.
- The child is a US citizen, US citizen, or US resident alien.
- A child does not file a joint return, unless the sole reason for filing a return is to claim a refund of estimated taxes withheld or paid.
What is Additional Child Tax Credit (ACTC)?
ACTC aims to help working parents with low and moderate incomes. Therefore, families must have a minimum earned income of $2,500 to claim the ACTC.
Parents whose income comes solely from “unearned” income, such as interest and dividends, pensions and annuities, Social Security, unemployment, alimony, or child support, do not qualify.