Child Tax Credit

1. Child Tax Credit Definition of Child Tax Credit: Reduces tax bill on Dollar-to-Dollar Basis. It can bring tax bill to zero. You might get a refund. Eligibility Requirements: • You must have provided at least half of the child’s support during the last year, and the child must have lived with you for at least half of the year. • The child cannot file a joint tax return. • The child must be 17 or younger. CTC can reduce the tax bill if meet requirements: • Age • Relationship • Support • Dependent Status • Citizenship • Length of Residency • Family Income

2. How to qualify: • A dependent child must be 12 or younger at the time the childcare is provided. • Spouses and other dependents don’t have an age requirement, but IRS rules say they must have been physically or mentally incapable of self - care and must have lived with you for more than half the year. • If you’ re married, you must file as married filing jointly. • You must have earned income — money you earned from a job. Investment or dividend income doesn’t count. • You must provide the care provider ’s name, address and Taxpayer Identification Number — either a Social Security number or an Employer Identification Number. Income and Age limits: Family upper-Income Dependent Age Qualifications Qualification Limit Filing Status AGI Age Qualified Single $240,000 5 and youngers Up to $3,600 Head of the Household $240,000 6 to 17 Up to $3,000 Married Filing Jointly $440,000 Age 18 $500 Age 19 to 24, $500 (Full time college students) You can’t claim if: • Your spouse • A parent of the dependent child • A dependent listed on your tax return • Your child who is age 18 or younger, even if they’re not listed as a dependent on your return. Want to know more about Child Tax Credit or accounting services. Connect with our team by filling the below form or you call us on (+1) 718-426-4661 or email us on connect@aggarwalcpa.com