Yo what'd it do you tube the child tax credit just got bigger under the new tax reform law we'll get into the details in this video and we're starting right now hey what's up guys this is Eli with build your tomorrow a channel dedicated to everything and anything personal finance we believe is spending less than we earn saving money paying down that making sound investments but most importantly guys we believe in investing in ourselves so if you are new here consider subscribing the big news is that the child tax credit may be worth up to two thousand dollars depending on your income yep you heard that right it's $2,000 per qualifying child and that's up from $1000 in 2023 now to qualify your child has to meet the following criteria the child must be under the age of 17 the child must be either your son daughter stepchild foster child brother sister stepbrother stepsister or a descendant of any of these individuals which includes your grandchild niece or nephew and an adopted child is always considered your own child the child must not provide more than half of their own support so essentially you got to be paying for most of the stuff you have to clean the child on your federal tax return the child has to have a valid social security number and the child has to be either a US citizen a US national or a u.s. resident alien lastly the child must have lived with you for more than half of the tax year now some exceptions apply like for example if the child was away at school then you know that's an exception but for the most part the child must have lived in your home for more than half...
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Schedule 8812 calculator Form: What You Should Know
The total child tax credit amount that could be claimed would be reduced by the child tax credit percentage from the previous year. You can claim any amount of this adjusted-gross income that is equal or below 100% of the federal poverty level. The additional child tax credit is used to offset the amount of a tax liability as well as for tax payment purposes. There are 2 phases to the child tax credit. Phase 1 : The first phase of the child tax credit is the standard deduction, if you itemize. The amount of the tax credit you get is the amount by which: (a) The percentage of your modified adjusted gross income exceeds 100% of the federal poverty level for the year, or (b) Your eligible child has earned income for the year. Phase 2 : For the second phase of the child tax credit, the amount is as follows: Tax Credit Amount First 20% Additional Child Tax Credit (ACT) 0.00 If either phase 1 or phase 2 fails to apply to you or if you make a qualifying child for the first time during the tax year, you can use Schedule SSA-E, to claim your credit. Form 8812 is only for tax filing and not for claiming the credit. You do not need to attach Schedule 8812 to your tax return. If you made a qualifying child for the first time, you are also allowed to add Form 8812 to your income and claim the credit for the subsequent year. If you had earned taxable income from qualifying child during the year, your tax liability or the federal tax credit for the year is reduced by the amount of credit you actually claim. If you have a tax liability of 2,000 or less, claim the standard deduction in step 1. If you have other eligible children that you can't claim for a total of 12,000, claim the Additional Child Tax Credit in step 1 before claiming the standard deduction. This is because, in step 1, you are required to figure the standard deduction in an after-tax amount. If you do not claim Form 8812 by the due date, the IRS will determine your actual tax liability. You can get a copy of Form 8812 from the IRS, by clicking here. If you don't have any income, but you had other taxable income, report the income in 2023 to avoid getting a penalty.
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