Category: Child Tax Credit, Tax Credits Tags: 2018, 2019, 2020, child, credit, is, tax, what Do you have one or more children who are under 17 living with you throughout the year? Child tax credits are available for low- and moderate-income families to help offset the costs of children, and for qualifying filers, this can mean significant amount of money back for having children. Then you may be able to get a big refund through the Child Tax Credit on your tax return this coming tax year. One of the largest changes for The Tax Cuts and Jobs Act of 2018 has to do with the changes to the child tax credit. For example, if you have four qualifying children you can take the credit for each of them – a total of $8,000. The Child Tax Credit can significantly reduce your tax bill if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. Our guide is going to introduce you to a child tax credit calculator you can rely on and show you how much you can get back and how this tax credit works. The Additional Child Tax Credit allows for a portion of the regular Child Tax Credit that you were not able to claim, to be refundable even if you do not owe any tax.

For Tax Years 2018-2025, the maximum refundable portion of the credit is $1,400 (equal to 15% of earned income above $2,500). The 2019 and 2020 Child Tax Credit (CTC) is set to $2,000 per child and is available to taxpayers who have children aged under 17 at the end of the tax year.Taxpayers can claim the CTC Child Tax Credit for every child who qualifies with no upper limit. If your tax is $0 and your total earned income is at least $2,500, you can claim the refundable part of the credit. Working Tax Credit rates The child tax credit is one of the most valuable tax credits for families with children under the age of 17. The Child Tax Credit and Its Limitations. (see the Additional Child Tax Credit).

These tables show rates and allowances for tax credits, Child Benefit and Guardian’s Allowance by tax year (6 April to 5 April). You and/or your child must pass all seven to claim this tax credit. For tax years prior to 2018, the Child Tax Credit provides up to a $1,000 per child tax credit for a maximum of three children. For 2018, the recently passed GOP tax reform bill doubles the amount of the Child Tax Credit from $1,000 to $2,000 per qualifying child. It's also important to point out that the Child Tax Credit is partially refundable – up to $1,400 of the credit is refundable for each qualifying child on your 2018 tax return.