aadditional Child tax credit It can be very important for many families in United States of America.
For those who owe less tax than the available credit, they usually cannot claim the child tax credit in full.
It may mean, however, that they are able to claim the additional refundable child tax credit.
the Additional Child Tax Credit (ACTC) It can give parents the ability to lower their tax bill but also to have more money in their pockets to help raise children and offset the costs that children bring in.
According to a report by the USDA in 2015, the cost is approximately $233,000 to cover food, housing, transportation, health care, clothing, child care, education, and everything else a child needs up to the age of 17.
What is the value of the child tax credit?
The standard child tax credit is up to $2,000 per child where these requirements are met:
- The child was under the age of 17 at the end of the tax year.
- A child is your son, daughter, stepchild, adopted child, brother, sister, half-brother or half-sister, grandchild, niece or nephew.
- You claim that the child is dependent.
- The child does not provide more than half of his own support.
- The child has lived with you for more than half of the year.
- The child is a U.S. citizen, U.S. citizen, or alien residing in the United States.
- A child does not file a joint return with anyone else, unless the sole reason for filing is to claim a refund of withholding taxes or estimated taxes paid.
What is the Additional Child Tax Credit (ACTC)?
The goal of ACTC is to help working parents with low to moderate incomes. Therefore, families must have at least $2,500 in earned income 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, are not eligible.
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