Until the legislation is actually signed into law, you may wonder if you should hold off on filing your tax return. Though the proposed changes have cleared the House, it's up in the air whether the Senate will approve the bill. Should I wait to file my tax return or file as soon as I can? The remainder of the $2,000 after the refundable amount ($200 for tax year 2023) would be nonrefundable, so you could use the tax credit only against taxes you owe - after your tax bill hits $0, you won't get additional money. That means if it's approved you could claim the expanded credit this tax season when you file your 2023 tax returns.Īs proposed right now, the new child tax credit would continue to be partially refundable (so, for a part of the credit you could get a refund even if you didn't owe any tax) and the new rules would increase the maximum refundable amount per child from $1,600 per child to $1,800 in tax year 2023, to $1,900 in tax year 2024 and to $2,000 in tax year 2025, with the 20 amounts adjusted for inflation. If approved, the new rules around the $2,000 child tax credit would be more modest and cover three tax years: 2023, 20. Congress didn't extend the expanded credit in 2022, and the credit returned to its pre-pandemic rate. Mark Steber, chief tax information officer at Jackson-Hewitt, says many government sites keep historical information live "for people playing catch-up with their taxes." Will Congress expand the child tax credit in 2024?Īs part of a massive COVID-19 aid package, Congress in 2021 temporarily expanded the child tax credit, which helped drive child poverty to a record low. Note: If you search online for information on the child tax credit, you may come across details on the 2021 expanded tax breaks, so double-check that you're viewing the most recent information. The child tax credit is phased out completely at $240,000 for individuals and $480,000 for married couples filing jointly. For example, a MAGI of $210,000 as an individual would allow you to claim $1,500 for each eligible child. If your MAGI is higher than the income limits, the amount of child tax credit you receive will decrease by $50 for every $1,000 above the limit. Go to the IRS website for more information. You are a US citizen or resident alien.You are claiming them as a dependent on your tax return.They have lived with you for over half the year.They have contributed no more than half of their own financial support in the relevant tax year.They are your legally recognized child, stepchild, foster child, sibling, half-brother or half-sister, or a descendant of one of these categories (like a grandchild or niece or nephew).They have a valid Social Security number. The child you're claiming the credit for was under the age of 17 on Dec.You have a modified adjusted gross income, or MAGI, of $200,000 or less, or $400,000 or less if you're filing jointly.To be eligible for the tax break this year, you and your family must meet these requirements: Who is eligible for the child tax credit?
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