United States Citizens are still feeling the impact of a very difficult year in 2022. After two years of strict lockdowns, the return to normality is far from straightforward and supply problems have increased significantly. eat the cost of basic things like groceries.
Adding to these problems were the sanctions placed on Russian oil imports, which caused the price of a gallon of gas to record highs. Realizing the rapid growth of the economy, the United States Federal Reserve implemented a series of interest rate increases.
Rising borrowing costs have seen investors cut back on their operations and America is currently on the brink of a financial crisis, with technology sector has laid off thousands of workers.
With another tough year ahead, many Americans will be doing what they can to make sure they’re saving every dollar possible. Families with children can rely on the Child Tax Credit scheme to help reduce their tax bill.
What is the Child Tax Credit?
Child Tax Credit (CTC), a benefit given to American taxpayers that allows them to claim up to $2,000 in tax credits for eligible children, and up to $1,540 in refunds return.
Here is a list of qualifications required for your child to be eligible for CTC:
- The child is younger than 17 years of age at the end of the financial year
- The child is your family or legal ward as determined by the court
- You say the child is a dependent
- The child provides no more than half of his own care
- The child lived with you for more than half a year
- The child is a US citizen, US citizen, or US resident alien
- The student does not file a joint statement with anyone else
What is the Additional Child Tax Credit?
Additional Child Tax Credit is a program that secures refunds that will be redistributed to eligible families if they have an amount left over or after their tax bill to zero.
Unfortunately, the program was repealed in 2018 under the Tax Cuts and Jobs Act (TCJA).