Smiley face
Weather     Live Markets

With the tax deadline fast approaching on April 15, it is essential to file your tax return if you have not done so already. If you have been waiting for the child tax credit expansion bill to pass, it is crucial not to delay any longer, as you could be missing out on the money you are eligible for. The child tax credit is partially refundable, allowing you to receive a refund even if you do not owe any tax, but the remainder is nonrefundable and can only be used against taxes you owe.

To be eligible for the child tax credit in 2024, your modified adjusted gross income (MAGI) must be $200,000 or less for individuals or $400,000 or less for joint filers. The child you are claiming the credit for must have been under 17 years old on December 31, 2023, have a valid Social Security number, and meet other criteria. If your MAGI exceeds the income limits, the amount of child tax credit you receive will decrease, and it phases out completely at certain income thresholds.

While Congress temporarily expanded the child tax credit in 2021, it has since returned to its pre-pandemic rate, with no extension in 2022. There are currently proposals to expand the child tax credit for tax years 2023, 2024, and 2025, increasing the maximum refundable amount per child incrementally. However, until the legislation is signed into law, it is recommended not to wait to file your tax return, as you can still claim other available credits for parents in addition to the child tax credit.

To claim the child tax credit, you need to enter your eligible children on Form 1040 and attach a completed Schedule 8812. If the credit exceeds what you owe in taxes, you may forfeit the difference unless you qualify for the additional child tax credit. Other federal income tax breaks for families include adoption credits, education credits, and the earned income tax credit. Additionally, 16 states offer their own child tax credit this season, each with varying requirements and benefits.

In conclusion, with Tax Day approaching, it is essential to file your tax return to claim any credits you are eligible for, including the child tax credit. While there are proposals to expand the child tax credit for future tax years, it is recommended not to delay filing your taxes, as there are other credits available that you can take advantage of. By understanding the eligibility criteria and requirements for claiming the child tax credit, you can ensure you receive the maximum benefits for your family.

© 2024 Globe Echo. All Rights Reserved.