Check if You Qualify for the Child Credit Refund; Here’s How to Claim It
With less than two weeks left to file your taxes, you may want to know when you'll receiver your tax refund. Well, if it's been weeks since you filed your taxes with the Internal Revenue Service, it may be a good idea to check the status of your tax return online. However, it's important to note that that refund will take a little longer if you have also claimed the child tax credit or earned income tax credit.
The child tax credit is the $2,000 benefit available to those with dependent children under 17. To qualify, you and your child/children must meet certain eligibility criteria that include their age and your relationship with them. Moreover, criteria like income are also taken into account. This means you will be eligible for the $2,000 if your modified adjusted gross income is $400,000 or below for married couples or $200,000 or below for all the other filers.
It's also important to note that the credit will get slashed by $50 for each $1,000 that your income exceeds the threshold. If you have not filed for the taxes and have a dependent child, look at the criteria and reduce your tax bill.
As for the relationship, per the IRS, the child for whom you are claiming the refund must be your son, daughter, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of those people (e.g., a grandchild, niece, or nephew). It's also important that you have already provided for at least half of the child's support during the last year leading up to the filing.
How to claim the Child Tax Credit in 2024?
You need to fill the forms 1040 or 1040-SR by April 15, 2024 or by Oct. 15, 2024 with a tax extension, per the IRS. It must also fill out Schedule 8812 ("Credits for Qualifying Children and Other Dependents") which will be submitted within the 1040. It's recommended that you use tax software that will guide you while claiming the child tax credit using a questionnaire, which will simplify the process to a huge extent.
2024 Child Tax Credit news
Child Tax Credit has been in the news for quite some time as lawmakers work to expand the amount. The Tax Relief for American Families and Workers Act of 2024, a piece of nonpartisan legislation was recently passed that aims to expand the tax credit. However, as of now, the expansion bill has been stalled in the Senate for several weeks, which has many wondering if they will pass it in time for this year's filing season.
If the bill is passed in the current format, then it will extend benefits to lower-income families and those who are unable to get the full benefits of the Child Tax Credit. Changes include increasing the credit amount to $1,800 from $1,600 per dependent. The bill also urges the base child tax credit which is currently $2,000 to be adjusted for inflation. Meanwhile, the IRS urges filers to continue with the filing as usual, "Taxpayers should not wait for this legislation to file their returns," Danny Werfel, the IRS commissioner, said in a Feb. 15 hearing.