Child tax credit by the numbers

Taxpayers may be able to claim the child tax credit if they have a qualifying child under the age of 17. Part of this credit can be refundable, so it may give a taxpayer a refund even if they don’t owe any tax.

The taxpayer’s qualifying child must have a Social Security number issued by the Social Security Administration before the due date of their tax return, including extensions.

A dependent who doesn’t have the required SSN may be eligible to be claimed for the credit for other dependents.

Here are some numbers to know before claiming the child tax credit or the credit for other dependents.

  • $2,000: The maximum amount of the child tax credit per qualifying child.
  • $1,400: The maximum amount of the child tax credit per qualifying child that can be refunded even if the taxpayer owes no tax.
  • $500: The maximum amount of the credit for other dependents for each qualifying dependent who isn’t eligible to be claimed for the child tax credit. This can include dependents over the age of 16 and dependents who don’t have the required SSN.
  • $400,000: The amount of adjusted gross income for taxpayers who are married taxpayers filing a joint return before the credit is reduced.
  • $200,000: The amount of adjusted gross income for all other taxpayers before the credit is reduced.

Some taxpayers may benefit from the credit for other dependents

Taxpayers with dependents who don’t qualify for the child tax credit may be able to claim the credit for other dependents. The maximum credit amount is $500 for each dependent who meets certain conditions. These, include:

  • Dependents who are age 17 or older.
  • Dependents who have individual taxpayer identification numbers.
  • Dependent parents or other qualifying relatives supported by the taxpayer.Dependents living with the taxpayer who aren’t related to the taxpayer.
  • The credit begins to phase out when the taxpayer’s income is more than $200,000. This phaseout begins for married couples filing a joint tax return at $400,000.

    A taxpayer can claim this credit if:

    • They claim the person as a dependent on the taxpayer’s return.
    • They cannot use the dependent to claim the child tax credit or additional child tax credit.
    • The dependent is a U.S. citizen, national or resident alien.

    Taxpayers can claim the credit for other dependents in addition to the child and dependent care credit and the earned income credit.

     

    Here’s why taxpayers should be using direct deposit for tax refunds

    With the filing season just around the corner, taxpayers should be aware of the benefits of using direct deposit for refunds. It’s easy, secure and the fastest way to get a tax refund.

    • It’s the best and fastest way for taxpayers to get their tax refund.
    • It’s free.
    • It’s secure.
    • Taxpayers can deposit their refund into not only one, but also two or three accounts.
    • Combining direct deposit with IRS e-file is the fastest way for taxpayers to receive their refund.
    • When using direct deposit, there’s no risk of having a paper check stolen or lost.
    • The IRS uses the same system to deposit tax refunds that Social Security and Veterans Affairs use to deposit benefits into millions of accounts.
    • It’s easy. Just follow the instructions in the tax software or on the tax form.
    • Taxpayers can use direct deposit even if they are filing by paper.
    • Direct deposit saves taxpayers money. It costs the IRS more than $1 for every paper refund check issued, but only a dime for each direct deposit made.