The child tax credit is a special tax credit that a person can receive on his or her income taxes. To qualify for the child tax credit, the person must meet a number of criteria. The taxpayer must be caring for a child under 17 years of age through the end of the tax year. The taxpayer must have also paid more than half of the expenses for that child during the entire year. Additionally, the child must be a United States citizen, and the taxpayer must claim him or her as a dependent on that year’s tax return.
How Much Is the Child Tax Credit Worth?
The maximum amount that a person can receive from the child tax credit is $1,000 per qualifying child. However, the person could receive an amount that is as small as $50. The amount that one receives from the child tax credit depends on his or her income and taxable amounts. A taxpayer earning more than $130,000 in a tax season will not qualify for the child tax credit.
Is There a Way to Maximize the Amount?
The highest amount of child tax credit that a person can receive is $1,000. The only way to maximize is to earn less money during the year. If the amount of child tax credit is more than the amount owed for taxes, then additional tax credits could be claimed. You should see a tax specialist or accountant if you are trying to maximize the money you receive back from income taxes. A wide variety of services is available for anyone calculating taxes.
How to Make Sure You Get the Right Amount
The best way to ensure all credits are correct is to contact a professional tax service. Several large name companies offer tax services for a reasonable price. Another alternative is to use tax software. Many of the modern tax software programs help with the process of completing a 1040 form. Some programs are so intricate that they give thorough descriptions of every step in the entire process. If you choose to use such software you will also have the option to file your taxes electronically. The cost of tax software varies from $29 to $69 depending on the services the person needs.
You always maintain copies of business expenses, childcare expenses, educational expenses, medical expenses, contract work income, and the like. These documents will help you lessen the amount of money that you have to pay. They can also help create a larger tax refund.