Child Tax Credit and Working Tax Credit
Coping with the costs and challenges of raising a child can be very tough for many parents. Caring for a child means putting him to the right nursery school, leaving him with the right day care centre and providing him with all the basic necessities to ensure a safe and secured childhood. The government offers help to parents who find it difficult to manage everything single-handedly, in form of 'Child Tax Credit' And 'Working Tax Credits'.
What is 'Child Tax Credit' And 'Working Tax Credits'?
Working tax credit (WTC) is a state benefit offered to working people with a low income in the United Kingdom. You will be eligible to get a WTC no matter whether you work for an employer or are self-employed.
Child Tax Credit (CTC) is paid by the government to the help parents raise their children. Parents will be eligible to get money for every child that qualifies under the program. Even non-working parents can claim the CTC. Child Tax Credit does not include any compensation for childcare. You will be able to claim the CTC if you are above 16 years of age and have children who are:
- under 16 years of age or
- under 20 years who are into full-time education or training
Things to Know About Child Tax Credits
The child tax credit can reduce your tax bills by $1,000 per child depending upon your income and other circumstances. So what are the things that you need to know to get the maximum benefit from the child tax credit.
To claim the child tax credit you must make sure your children are under the eligible age. There are some things to be considered to determine whether you qualify for the Child tax Credit or not:
Your children, for whom you are willing to claim the tax credit must be under the age of 16 years or under the age of 20 years if they are in full time education or training.
The child for whom you are claiming the tax credit must be your own child, stepchild or a foster child allowed to stay with you by orders of the court or the authorised agency. You can also claim the tax credit for a legally adopted child. You are also allowed to claim for your sister, brother, stepbrother or stepsister and their descendents if they qualify the other tests.
You must be responsible to take care of the children for whom you claim the tax credit:
- the children live with you full time
- you're the main care giver
- you are responsible to pay for their meals and pocket money
How to Apply?y
Claiming the Child Tax Credit is very easy; you can either use the online tool or directly get in touch with the local Tax Credits Office. If you are claiming for the first time, the form can take up to 2 weeks to arrive. If you already have been claiming the tax credit, you don't need the claim form. So now you can raise your children without any hassles. Take advantage of the Child Tax Credit and Work Tax Credit to lead a comfortable and hassle free life.