We know that filing your tax return before the April 15 deadline is a great achievement, but remember that the process is not over yet, now you must wait for the refund of your child tax credit. If more than 21 days have passed since the day you filed your tax return with the Internal Revenue Service (IRS), it would be a good idea to check the status of your tax return online.
The refund of the child tax credit could be delayed if you applied for the child tax credit or the earned income tax credit, since these credits take a little longer to process, according to the law, the IRS could not start to send tax refunds to those requesting these credits until mid-February at the earliest.
When it comes to tracking your refund, it’s vitally important to be well-informed, and patient, as mentioned in several media channels’ coverage of improving tax software, “The hard part is over. Now you just have to watch out for your child tax credit refund.” It is also important to emphasize that “the IRS could not begin sending tax refunds to those claiming the credits until mid-February, at the earliest.”
What Is the Child Tax Credit?
The Child Tax Credit in the United States is an essential tax benefit that was created to implement help for families to face the costs related to raising children. This credit generates significant financial relief for many American households every year, which allows them to reduce their tax burden and, in many cases, receive a tax refund. Here we’ll provide detailed information about how this credit works and who is eligible to receive it.
First, you’ve got to understand what the Child Tax Credit is basically. This credit allows taxpayers to request a tax credit for each qualifying child they have, the amount of the credit is up to $2,000 for each child under 17 years of age. At the end of the fiscal year, on the other hand, up to $1,400 of this type of credit is refundable, which means that even if the amount of the credit is greater than the amount of taxes owed, the taxpayer can receive a refund for the difference.
To be an eligible candidate for the Child Tax Credit, some requirements must be met:
- Be a biological child, adopted or in the process of adoption, be a stepchild, brother, sister, nephew, niece, grandchild or foster child of the taxpayer.
- You must have lived with the taxpayer for more than half of the tax year
- Not having provided more than half of his own support.
- Not having filed a joint return with your spouse, if you have one.
It’s always good time to emphasize that the Child Tax Credits are subject to some income limits, this means that taxpayers with income greater than certain amounts may have the available amount reduced or the right to the credit eliminated. However, this limit of Income varies depending on the taxpayer’s marital status and the number of children he or she has.
For those who contribute and cannot claim the Child Tax Credit due to income level, they may still be candidates for the Additional Child Tax Credit. This credit provides a refund of 15% of income above a certain limit, up to a maximum of $1,400 per child, and was created to help low- and moderate-income families offset child care costs.
