Child Tax Credit Boost in USA – Eligibility & How to claim it online?

Child TaWhile the enhanced CTC 2021 has expired, American families with children under 17 can still tap into financial support through the base CTC. In 2023, this credit offers up to $2,000 per child, with a potentially refundable portion of $1,600. 

Child Tax Credit Boost in USA

CTC stands as a pillar of financial support for families with children. For the 2023 tax year, eligible taxpayers with dependents under 17 may claim a credit of up to $2,000 per child, offering significant relief and reducing tax burdens. 

While the full credit amount cannot be guaranteed for everyone, the potential for a $1,600 refundable portion ensures that even those with limited tax liability can reap the benefits of this valuable program.

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CTC Eligibility 

• Your child must be under 17 years old at the end of 2023. 
• The child must be your biological, adopted, foster, step, sibling, half-sibling, or descendant of any of these (e.g., grandchild, niece, or nephew).
• You must be able to claim them as a dependent on your tax return. 
• The child must have lived with you for at least half the year, with some exceptions.
• You must have provided at least half of the child’s financial support in the past year. 
• The child must be a U.S. citizen, national, or resident alien with a valid Social Security number.
• Your income must fall within certain limits to claim the full credit amount, with a gradual reduction or elimination above those limits.

Claiming the Extra Boost of CTC in 2024

While the CTC offers valuable financial support for families, some might not be able to use the full amount due to low tax liability. This is where the Additional CTC (ACTC) comes in, offering a partial refund for eligible families.

To claim the ACTC, you must meet all the CTC requirements and a few additional criteria:

• Earned income of at least $2,500: This ensures you contribute to the economy through work or self-employment (passive income like dividends doesn’t count).
• Three or more qualifying dependents: If you have a larger family, you automatically qualify for the ACTC, regardless of your earned income.

Remember:

• You (or your partner if filing jointly) can’t exclude foreign-earned income from your taxes.
• The ACTC amount is 15% of your earned income above $2,500, capped at the remaining unused portion of your CTC credit.
• For 2023, the maximum ACTC refund per qualifying dependent is $1,600.

Claiming Your 2023 CTC

• File your tax return: You can claim the CTC on your Form 1040 or 1040-SR by April 15, 2024 (or October 2024 with an extension)
• Don’t forget Schedule 8812: This form is crucial for calculating your CTC amount and any potential Additional CTC (ACTC) refund. Submit it along with your 1040.
• Free options for lower-income: If your income falls below a certain threshold, the IRS’s Free File program can provide free tax software to help you claim your credit.

When to expect a CTC Boost Refund?

Claiming the CTC can bring welcome financial relief, but don’t expect your refund instantly, especially if you filed early. 

• Mid-February: Due to IRS regulations, refunds for returns claiming the CTC can’t be released until mid-February. For both paper and electronic filings, this is applicable.
• Even if you file electronically before mid-February, you’ll have to wait until then to see your refund. However, if you use direct deposit and submit an error-free return, you can expect your refund within the usual timeframe (around three weeks) after the mid-February date.
• Paper Filers Beware: Expect longer wait times if you file your return by paper. The processing time is generally slower, so you might not receive your refund until after mid-February, depending on the IRS workload.

How to track the status of CTC boost?

There are a few ways to track the status of your CTC:

Online:

• IRS “Where’s My Refund?” tool: This is the most reliable and official way to track your refund. You can access it using your Social Security number, filing status, and the exact amount of your refund you expect. 
• The tool will tell you if your return has been received, and processed, and whether your refund has been sent.

Phone:

• IRS hotline: You can call the IRS helpline at 1-800-829-1040 to speak to a representative about your refund status. Be prepared to provide your Social Security number and filing status.

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