Get Ready For Taxes: Important Things to Know About Tax Credits
Child Tax Credit
There are a number of things you can do to help get ready for taxes. Taxpayers can claim the Child Tax Credit if they have a qualifying child under the age of 17 and meet other qualifications. The maximum amount per qualifying child is $2,000. Furthermore, Up to $1,400 of that amount can be refundable for each qualifying child. Therefore, like the EITC, the Child Tax Credit can give a taxpayer a refund even if they owe no taxes.
In addition, The qualifying child must have a valid Social Security number issued before the due date of the tax return, including extensions. For tax year 2019, this means April 15, 2020, or if a taxpayer gets a tax-filing extension, Oct. 15, 2020.
The amount of the Child Tax Credit begins to phase out at $200,000 of modified adjusted gross income. Also, $400,000 for married couples filing jointly.
Credit for Other Dependents
This credit is available to taxpayers with dependents for whom they cannot claim the Child Tax Credit. These include dependent children who are age 17 or older at the end of 2019 or parents or other qualifying individuals supported by the taxpayer.
More tax resources can be found here.