As tax season approaches, Americans are preparing to file their 2024 tax returns. For parents and guardians, the process of filing taxes can become more complex compared to when you filed individually or jointly with a spouse. However, this complexity comes with the potential advantage of qualifying for several new tax credits and deductions, all dependent on your income level.
The Child Tax Credit has become a crucial piece of policy for many families in recent years, offering significant savings. Knowing how to qualify for this credit can help you maximize your benefits on your 2024 taxes. For 2024, the maximum tax credit per qualifying child is $2,000 for children under 17.
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Additionally, the refundable portion of this credit, known as the additional child tax credit, allows you to receive up to $1,700 per qualifying child. To qualify for the Child Tax Credit, there are specific requirements you must meet: first, you must be a parent or guardian, and then, you need to file your taxes in 2025.
Ensuring your child or dependent meets the eligibility criteria for tax benefits involves understanding specific requirements set by the IRS. To begin with, your child must possess a Social Security number that is valid for employment in the United States. Additionally, they need to be under 17 years old by the end of the calendar year.
Eligibility Requirements for Dependents
To qualify, your child or dependent must meet the following criteria:
- They should be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or any descendant like a niece, nephew, or grandchild.
- They must not provide more than half of their own financial support during the tax year.
- They need to have lived with you for more than half of the tax year.
- You must properly claim them as a dependent on your tax return.
- They must not file a joint return with their spouse for the tax year, unless it is solely to claim a refund of withheld income tax or estimated tax paid.
- They must be a U.S. citizen, U.S. national, or U.S. resident.
The value of the child tax credit and any additional tax credit may decrease if the parent’s or guardian’s gross income exceeds certain thresholds. Specifically, the credit begins to phase out if your gross income is more than $200,000 for single filers or $400,000 for those filing jointly with a spouse.