Families who are eligible can receive thousands of dollars in tax relief through the Child Tax Credit, which is among the most commonly utilized forms of tax relief. With the beginning of tax season in the United States, it’s anticipated that approximately 168 million individuals will file their individual tax returns over the next few months. If you haven’t filed your taxes yet, it’s advisable to assess if you meet the criteria for different tax credits.
Among the most commonly used tax credits is the Child Tax Credit (CTC), which provides tax relief to families with qualifying children. Even individuals with low income, who are not typically required to file taxes, can claim this support. If you fulfill the eligibility conditions for the CTC, you can avail the credit in addition to any Social Security or Supplemental Security Income assistance you are receiving. Moreover, receiving funds from the CTC will not impact your eligibility for Social Security Administration (SSA) programs, as tax credits are not considered as income.
Here are the steps to follow to claim the Child Tax Credit
In case you have eligible dependent children living in your household, you may qualify for a considerable tax benefit via the CTC. To guarantee that you receive the assistance, you must include your children and other dependents on the IRS Form 1040, which is the standard form for filing individual income tax returns. Additionally, it’s crucial to attach a completed Schedule 8812 form, which will enable you to verify if you are still entitled to any funds from the advanced Child Tax Credit payments provided during 2021.
The following criteria must be met by CTC claimants for their child to be considered a tax dependent:
- The child should be no older than 16 by the end of the previous year.
- The child must be a son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of these.
- The child should not be providing more than half of their financial support.
- The child must have lived with the claimant for at least half of the year.
- The child cannot file a joint return with their spouse.
- The child must be a US citizen, national or resident alien.
Individuals with an annual income exceeding $200,000 or $400,000 for couples filing jointly will not be eligible for the full support. Nevertheless, they might be able to receive partial credit. To verify your eligibility for the Child Tax Credit and to compute the amount of your credit, use the IRS’ Interactive Tax Assistant tool available online.