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This is how you can claim the Child Tax Credit in the United States

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This is how you can claim the Child Tax Credit in the United States

The Child Tax Credit (CTC) is a highly anticipated tax benefit for parents in the United States, but many are left wondering if they can claim it even if they did not generate income in 2023. The good news is that, in recent years, the CTC has undergone modifications to provide financial support to households with children, including those with low or no income.

The Additional Child Tax Credit (ACTC) is part of the modifications approved for the years 2023 and 2024, allowing families to receive $1,600.00 USD in cash out of the $2,000.00 USD tax benefit. This can provide much-needed relief for families facing financial challenges.

It’s important to note that while the value of the CTC rose during the pandemic, it has now returned to its usual level of $2,000.00 USD. Those who did not generate income and wish to apply for the ACTC must complete Form 8812.

In order to qualify for the CTC, the child must be under 17 years of age at the end of the year and meet the relationship criteria established by the IRS. Additionally, the child must have lived with the applicant for more than half a year and be a US citizen, naturalized, or a foreigner residing in North America.

There are also income limits to qualify for the CTC, with individuals having a limit of $200,000.00 USD and married couples filing jointly having a limit of $400,000.00 USD.

Overall, the CTC and ACTC provide much-needed financial assistance to families with children, including those with low or no income. These benefits can be a significant help in alleviating financial burdens for many households across the United States.

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