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Child tax credit enhancements. Many changes to the Child tax credit (CTC) that had been implemented by the American Rescue Plan Act of 2021 have expired. However, the IRS continues to closely monitor legislation being considered by Congress affecting the Child Tax Credit. The IRS reminds taxpayers eligible for the Child Tax Credit that they should not wait to file their 2023 tax return this filing season. If Congress changes the CTC guidelines, the IRS will automatically make adjustments for those who have already filed so no additional action will be needed by those eligible taxpayers. Under current law, for tax year 2023, the following currently apply: — The enhanced credit allowed for qualifying children under age 6 and children under age 18 has expired. For 2023, the initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where AGI income exceeds $200,000 ($400,000 in the case of a joint return). The amount of the CTC that can be claimed as a refundable credit is limited as it was in 2020 except that the maximum ACTC amount for each qualifying child increased to $1,500. — The increased age allowance for a qualifying child has expired. A child must be under age 17 at the end of 2023 to be a qualifying child.

Did you know there's a tax benefit for parents with kids under 17? That’s right, the Child Tax Credit could reduce your tax bill. Dive into the latest Child Tax Credit update here to see if you qualify!

Great information on some of the tax advantages that could reduce your tax bill. For more information: https://lnkd.in/dsCR8ZF #taxattorney #taxlaw #taxseason #legalshield

The House of Representatives on Wednesday passed a bipartisan tax bill that would expand the child tax credit through 2025 and could have implications for taxpayers as early as this year. The $78 billion package wouldn’t go so far as reviving the expanded child tax credit families were able to claim as part of the Covid-19 pandemic response. But it would raise the maximum refundable tax break to $1,800 per child for tax year 2023, up from $1,600. The limit would rise again to $1,900 for tax year 2024 and to $2,000 the following year, along with adjustments for inflation. If the bill passes the Senate soon, families filing their 2023 taxes in the coming weeks could claim the expanded credit. That means eligible families could see an average $680 break this tax season, according to an Urban-Brookings Tax Policy Center projection. Though there’s support from both parties, it’s unclear whether the bill has the votes to pass the Senate.

Do you know the difference between Child Tax Credits and Additional Child Tax credits? The Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC) are both tax benefits available to eligible taxpayers with qualifying children. While they are related, they serve slightly different purposes: 1. Child Tax Credit (CTC): - Purpose: The Child Tax Credit is designed to reduce the amount of income tax owed by taxpayers with dependent children. - Eligibility: You can claim this credit if you have a qualifying child under the age of 17 at the end of the tax year. - Amount: As of 2023, the credit is up to $2,000 per qualifying child. - Non-Refundable Portion: The CTC is partially refundable. This means that the credit can reduce your tax liability to zero, but not all of it is refundable. For example, if you owe $1,500 in taxes and have a $2,000 CTC, you can apply $1,500 of the credit to your taxes, reducing your liability to zero. The remaining $500 could be eligible for a refund under the ACTC, depending on your circumstances. 2. Additional Child Tax Credit (ACTC): - Purpose: The ACTC is the refundable portion of the Child Tax Credit. If the amount of the CTC exceeds your tax liability, you may be able to receive the remaining amount as a refund, which is referred to as the ACTC. - Eligibility: To claim the ACTC, you need to have earned income of at least $2,500. - Amount: The ACTC can be up to $1,500 per child, as of 2023. - Refundable: The ACTC is fully refundable, meaning you can receive this amount even if you owe no tax. - Scenario: Imagine you have two qualifying children and are eligible for the full CTC of $4,000 ($2,000 per child). Your tax liability for the year is $1,000. - Child Tax Credit: You can use $1,000 of the $4,000 CTC to reduce your tax liability to zero. The remaining $3,000 would then be considered for the ACTC. - Additional Child Tax Credit: You may be eligible to receive up to $3,000 (up to $1,500 per child) as a refund, assuming your income and other conditions meet the requirements for the ACTC. In summary, the Child Tax Credit reduces your tax liability, while the Additional Child Tax Credit allows you to receive a refund of the unused portion of the CTC, up to certain limits. #form1040 #IRS #childtaxcredits #form8812 #UStax #Tax

Attention US Taxpayers! Understanding the intricacies of the Child Tax Credit (CTC) is crucial for maximizing your tax savings. TaxBuddy.com is here to help you navigate through the eligibility requirements, claim process, and potential benefits. Contact us to ensure your 2023 tax filing is prepared with expertise and precision. #TaxBuddy #ChildTaxCredit #USTaxation #TaxSeason #TaxRefund #TaxPlanning

?? ?????????????????????????? ?????? ???? ?????????? ?????? ??????????????? The Child Tax Credit (CTC) is a federal tax benefit designed to provide financial support for taxpayers with children under the age of 17. CTC can significantly reduce your taxes if you meet all seven requirements - Age, Relationship, Support, Dependent Status, Citizenship, Length of Residency & Family Income. You and/or your child must pass all seven to claim this tax credit. Additionally, some taxpayers may be eligible for a partial refund of the credit through the "additional child tax credit" (ACTC) ?? ?????? ???????? ???? ?????? ?????? ?????? ????????? For the 2023 tax year, the Child Tax Credit is worth up to $2,000 per qualifying dependent child. However, ACTC, can be up to $1,600 per qualifying child. Taxpayers can be eligible for the CTC regardless of their filing status, but the income thresholds for phase-outs can vary based on whether they are single, married filing jointly, or have another filing status. S?t?e?p?s? ?t?o? ?f?o?l?l?o?w? ?t?o? ?m?a?x?i?m?i?z?e? ?y?o?u?r? ?t?a?x? ?s?a?v?i?n?g?s?:? ?? Gather all the necessary information like your child's Social Security number, birth certificate required for supporting eligibility to claim the CTC. ?? List all your qualifying children and dependents in the specific portion of the Tax form ?? Complete Schedule 8812 also known as "Credits for Qualifying Children and Other Dependents ?? Follow Up on Your CTC Claim. While IRS doesn't release Child Tax Credit refunds immediately, if your CTC claim is denied, you can follow up with the IRS using Form 8862. The full amount of the 2023 Child Tax Credit is accessible for each qualifying child if all eligibility factors are met, and the annual income does not exceed $200,000 (or $400,000 if filing a joint return). Complexities of tax planning and preparation can be overwhelming. Don't let confusing tax terms and complicated forms hold you back from getting the financial support you deserve! TaxBuddy.com ensures tax experts are available to its users, throughout the year & provides value for money. We are a team of highly qualified CPAs and EAs who are expert in tax advisory and preparation. ? Ready to prepare your 2023 tax filing? Get in touch with us at ? f?i?l?i?n?g?@?t?a?x?b?u?d?d?y?.?c?o?m? or call us at +1 (469) 331-6169 Sujit Bangar Srinivas Reddy Samir Jayaswal Brijmohan Lavaniya #TaxBuddy #ChildTaxCredit #USTaxation #TaxSeason #TaxRefund #HigherEducationExpenses #StudentLoans #TaxPlanning #TaxSeason2024 #TaxPreparation #ExpatTaxFiling

Understanding the Child Tax Credit (CTC) The CTC is offered by the IRS as a tax relief for families to defray the expenses involved in raising a child. Eligibility for the Child Tax Credit To be eligible for the Child Tax Credit, the child or dependent must meet the following requirements: 1. Age: The child must be 16 years or under at the end of the tax year. 2. Relationship: The minor should be your child, stepchild, foster child, brother, sister, half-brother, half-sister, or child of any of them. 3. Support: A minor should not have given more than half of their support. 4. Dependent Status: The child must be a qualifying child for you or a qualifying relative. 5. Citizenship: The child should be either a U.S. citizen, U.S. national, or U.S. resident alien. Ineligibility for the Child Tax Credit Taxpayers cannot claim the Child Tax Credit if the child or dependent: 1. Is 17 years of age by the end of the tax year. 2. Does not have a relationship, support status, dependency status, or citizenship. Through knowledge about the criteria and IRS-provided options, families will make sure that they are using the highest amount of Child Tax Credit to which they are entitled. To get the latest information you need to refer to the IRS's official guidance on the Child Tax Credit.

Understanding Your Child Tax Credit Refund: A Simple Guide for 2024 Learn about the 2024 Child Tax Credit refund timeline, IRS processing speeds, and how to track your refund with "Where is My Refund?". #ChildTaxCreditRefund https://lnkd.in/gC-Bg3Qu