Frank Ellis Explains Rules of the Child Tax Credit 2018, 2019
Taxpayers can now read up on rules governing how to use the Child Tax Credit, thanks to an article by tax preparation planner Frank Ellis. In the article, Ellis starts by explaining that parents of children under 17 can receive $2,000 per child. Eligibility for the credit is largely determined by income. Thresholds, according to the author, were set by the American Taxpayer Relief Act of 2012.
The article then goes on to explain how tax credits work and what they mean. Intended to reduce tax liability, credits are different than deductions that bring down taxable income. The Additional Child Tax Credit is also mentioned, as are seven qualifying tests.
Qualifying factors are listed next. These tests give readers an outline of how to determine if they are eligible for the Child Tax Credit. The first is age, and then the author discusses the qualifiers related to the child's relationship to the taxpayer claiming them as a dependent. Support, dependency, and citizenship are other considerations. Also, joint returns cannot be filed between a child and their spouse if the goal is to just get a tax refund. Children must live with the taxpayer for at least half the year as per the residency test.
The article also details the loopholes associated with the residence test requirement. Taxpayers can take advantage of special circumstances such as illnesses, kidnapping, military service, and more. In addition, limitations and restrictions are detailed. Ellis describes provisions for modified gross income and filing status such as married filing jointly or separately.
In closing out the article, the author tells readers what to do if filing returns by paper and if they qualify for the Child Tax Credit or Additional Child Tax Credit. Lastly, a link to TurboTax so one can calculate their credit amount is provided.
More information is available at, https://filemytaxesonline.org/how-much-is-the-child-tax-credit/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
Media Contact
Frank Ellis
File My Taxes Online
945 East 8th Street Suite A
Traverse City, Michigan 49686
Website: http://filemytaxesonline.org/