How to Qualify for the Child Tax Credit 2018, 2019
The first factor that you need to consider when applying for the Child Tax Credit is your income. It is a benefit that is limited according to how much you earn, and you won’t qualify if you earn more than the specified amount.
The next element is your child or children. Once again, the easiest way to find out whether or not you’re eligible is to find a child tax credit calculator tool to find out where you stand. The best thing about these tools is that they will show you what you are eligible for each year, and you can keep coming back if your situation changes.
In 2018, the child credit is capped at $2,000 per child, an amount that is not set to change. If you earned more than $3,000 in the last tax year, the credit is partially refundable..
Naturally, apart from the financial side of things, you need to have a child or children that meet all the following qualifying criteria:
- The child must be 16 years old or younger on December 31st.
- The child must be an American citizen or national, or a resident alien.
- Only children who you claim as your dependent on your tax return are eligible.
- When applying for the credit, the child must be related to you as your offspring – think son, daughter, stepson, or stepdaughter; a sibling – again, brother, stepbrother, sister, or stepsister; or a grandchild, niece, or nephew. Children that have been legally placed under your care through adoption or court order may also benefit from the Child Tax Credit.
- Children who are being considered for the Child Tax Credit need to have lived with you for a minimum of 183 nights in a year, although certain conditions and rules apply when you are divorced, for example.
- Lastly, if the child as managed to cover more than half of their financial requirements by themselves, they may not be eligible.
Filing on your own or as the head of a household? You need to be aware that those earning more than $75,000 are no longer eligible for the Child Tax Credit. This figure jumps to $110,000 if you and your spouse are filing together, or $55,000 if you are married but filing separate returns.
Did you know that you may also qualify for the Earned Income Credit for those with low to moderate incomes.
You may be interested
Eight Hours Sleep Duration Linked to Cardiovascular RiskMohit Joshi - January 3, 2019
News study revealed that sleeping for ten hours may elevate risk of mortality by 30% as compared to sleeping for seven hours Researchers from Keele University conducted…
Tax Deductions and Credits Can Take a Chunk of Money Off Your Tax BillPareesh Phulkar - January 2, 2019
When you’re climbing uphill on a mountain of owed taxes, you may easily panic. However, it might not be as scary as it might initially look. As…
Claim your Child and Dependent Care Tax Credit Today with H&R Block 2019Pareesh Phulkar - January 2, 2019
Paying for child care or adult dependent care is one of the costly monthly expenses many families face. But without care, your children can't leave home to…