We encourage you to read this post to get all the required information on the upcoming extra tax refund money under the Child Tax Credit, including details on eligibility and payment dates.
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Extra Tax Refund Money Under Child Tax Credit
The American Rescue Plan provides the highest Child Tax Credit ever, offering significant relief to working families. Families can receive up to $2,000 per child, although only a portion of this amount is refundable.
If you qualify for the Child Tax Credit but cannot claim the full amount due to a lower tax liability, you may still benefit from the Refundable Additional Child Tax Credit. This extra tax refund can help increase your total refund and reduce your tax bill, providing additional financial support to offset expenses.
For more information about the Extra Tax Refund Money under the Child Tax Credit, please continue reading this post.
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Understanding Extra Tax Refund Money Under CTC
Qualified taxpayers receive the Child Tax Credit to reduce their overall tax obligations. If families owe less to the IRS than their eligible Child Tax Credit amount, they can claim the credit. The Additional Child Tax Credit (ACTC) allows taxpayers to receive a refund for any unused portion of the Child Tax Credit, subject to an inflation-adjusted cap.
Families may qualify for this refundable tax benefit if certain conditions are met. For the 2023 tax year, the refundable portion of the Child Tax Credit is up to $1,600 per eligible child. This amount will increase to $1,700 in 2024. To receive a refund, filers must complete Schedule 8812.
Who is Eligible?
Almost all households with children are eligible for the extra tax refund money under the Child Tax Credit. However, there are specific income restrictions and eligibility criteria that must be met. Here are some common and important criteria you need to fulfill to qualify:
- Age Requirement: The youngster must be under 17 at the conclusion of the tax year.
- Relationship: The child can be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, niece, nephew, or grandchild.
- Dependency: You must list the youngster as a dependant on your tax return.
- Support: The child must not provide more than 50% of their own financial support during the year.
- Residency: The youngster must have lived with you for more than half a year.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- Filing Status: The child should not file a joint return with another person unless it’s to claim a refund of withheld taxes.
The Child Tax Credit and Additional Child Tax Credit are designed to support working parents with low to moderate incomes. These credits help reduce the tax burden and can provide additional financial support for eligible families.
Payment Dates
The IRS has announced that for those opting for direct deposit, most extra Child Tax Credit refunds should be available in bank accounts or on debit cards by February 27, provided there are no issues with the tax return. Some individuals may even see their payments a few days earlier.
The delay is due to the IRS’s need to ensure the legitimacy of returns, as mandated by law, which requires extra time to prevent fraudulent claims. Consequently, earned income tax credit and extra child tax credit reimbursements cannot be issued before mid-February.
For specific refund dates, you can check the “Where’s My Refund?” tool. By February 17, this tool will be updated with the expected deposit dates for most early filers of EITC/ACTC refunds.
We sincerely appreciate your visit to our portal for all the essential updates on extra tax refund money under the Child Tax Credit.
