Child Tax Credit-Things You Need To Know
The government offers a lot of benefits for parents to ensure they can raise their children without much difficulty. The Child and Dependent Care Credit, Child Tax Credit and the Earned Income Tax Credit are different types of plans that help you reduce your tax bills. Hence you can save a considerable amount of money for your child's future.
If you are responsible for bringing up a child and you have a low income, then you will be eligible to get child tax credits. In order to determine whether you are eligible for the child tax credit, you need to fill up a series of forms and worksheets. Ideally, you will eligible to get the benefit, if you are above 16 years and you are responsible for raising at least one child who is:
- Below 16 years
- Under 20 years and pursuing full time education or some kind of training
How Much Child Tax Credit Can You Get?
By being eligible for the child tax credit, you can get up to $1,000 per child who is 16 years or younger. You will get the best benefits of the adjusted gross income of your household is:
- Below $110,000 for married couples filing jointly
- Below $55,000 for married couples filing separately
- Below $75,000 for single or head of household
In case your income increases, the credits go down by $50 for every $1,000 you earn above the threshold limit. If you have any problem determining the amount of money that you should be receiving, you can get professional help.
How will You Receive the Payments?
The amount that you are eligible to get under the child tax program will be transferred directly to the Bank, Post Office account or the Building Society. If you are unable to open or maintain any of these, the payment would be made by Simple Payment. Child tax credit is paid every four weeks.
In order to claim the child tax credit, you can call the Tax Credits Helpline and get the claim form. If you are already claiming the tax credit, you can update your claims by calling the same helpline number.
In order to make sure you keep receiving the tax credits, you must renew the tax credits claim every year. The child tax credit department would inform you about the requirements and necessary information required to keep the tax credits updated.
In case, there is a change in the setup such as the child leaves you or you shift base, you must at once inform the Tax Credit Office. Changes in set up might affect the amount of money you receive, so it is necessary that you keep the department informed.
The child tax credit can simply your life to a great extent and minimise the burden as well. So, make sure you claim the child tax credit if you are eligible under the plan. With help of a little planning you can bring up your child in the best possible way. So start preparing soon, if you still don't claim the tax credits!