The new tax credits for children that were implemented in October 2018 have been getting a lot of attention. While these credits have been beneficial, there are some things you might not be aware of – so this blog article breaks down the best ways to take advantage of these new tax credits for children.
Introduction to the Tax Credits for Children
The tax credits for children from birth to age 17 are a valuable asset to parents. These credits can be used to offset the cost of child care, education, and qualified transportation expenses. The law provides for two general types of tax credits: the Child Tax Credit (CTC) and the Child and Dependent Care Credit (CCDC). Most people will take advantage of the CTC since it is refundable. However, some may prefer using the CCDC as it is only partially refundable.
Tax credits are a great way to help families save money. There are several tax credits that you can use to gain a better return on your investment. One of the more popular tax credits has been for low-income families, but there is now a new tax credit for children! You may be wondering what this new credit is and how it works. This blog post will answer all those questions and more!
How Many Children Can File a Claim?
There has been a lot of confusion about the new tax credits for children. It is important to know how many children can claim this credit in order to maximize your benefit. This credit is currently available for children under the age of 17, but there are ways that you can increase your eligibility.
If you’re sending your child to daycare or you’re a stay-at-home mom, it may be possible to claim more than one child.
What Is A Qualifying Child?
A qualifying child for the child tax credit is a child who: has earned income from work or property, is under 19 years old, and has not provided more than half of his own support for the year.
Qualifying children include dependents under the age of 17 and individuals who were born in 2013 or later and is enrolled in an eligible school. A qualifying child can be a single individual, married individual, or head-of-household with at least one dependent child.
When Can They File A Claim?
The new tax credits for children are designed to provide additional help to low-income families. They are not available to individuals and they only provide a refundable credit after the child has reached the age of 17. The credit is also only part of the refundable portion of their tax return and you must receive a partial or full payment before claiming this credit on your own.
The Tax Cuts and Jobs Act of 2017 created new tax credits for children. One of these credits is the Child Tax Credit. This credit provides a tax break to parents who have any dependent under the age of 17. The other credit is the Dependent Care Credit and it provides a tax break to taxpayers who care for an elderly or disabled person, which includes children with special needs, so that they can go to school or work.
Who Can Only File A Claim If They Live With One Parent?
If you are married or have a partner, your spouse is not considered by the IRS as your “parent” for purposes of claiming the children tax credit. If you would like to claim the credit, you must file jointly with your spouse and both parents must be claimed on one return in order to qualify.
If a child lives primarily with one parent, the child’s other parent is not entitled to claim the child as a dependent.
How Much Money Will I Make?
The tax credits for children and the student loan interest deduction are both available for the 2018 tax year. If you are a single parent earning less than $60,000 per year, your child qualifies for the dependent credit worth up to $1,000. You can also earn up to $2,500 from this credit. The mortgage interest deduction is worth up to $750 if you are a married or head of household who owns a home.
The new tax credits that help parents with children under age 13 will cost $1.50 per month and will begin on January 1, 2019. If you qualify, you can claim up to $600 annually for your child(ren) or grandchild(ren).
If you are a parent and received the new tax credits for your children, you might have a lot of questions about how to use them. You’re not alone! There are plenty of people in the same boat as you looking for answers to their questions on what they should do with these credits. The first and most important thing is to learn how to claim them. That’s why we put together this guide that covers all possible scenarios.
With the new change in tax credits for children this year, you’ll be able to claim a child tax credit if you’re single, head of household, or married but only if you’re a parent.