As we all know that there will be a lot of changes starting this new year in terms of the tax structure, filing your annual returns, claiming your tax, getting tax exemptions and benefits, and so on, so you are required to be aware of all the changes. Taxpayers with kids may are also eligible now to claim specific tax benefits. Parents must consider child-related tax benefits while they are filing their annual tax return:
Dependent – Taxpayers are qualified now to claim their kids as dependent. The interactive Tax Assistant section on the IRS official website will help you determine the eligibility criteria and how to claim your kids as dependents. It basically requires some information like:
- Your marital status and relationship status to your dependents that you want to claim as. The amount of support required in order to file their returns.
- Basic annual income information. For example, your adjusted gross annual income would be the best criteria to determine the eligibility criteria.
- If no individual supplied more than exactly half of the support of your potential dependent, the terms of multiple support agreements that you possess.
This specific tool is designed for all the taxpayers who were the U.S. Citizens or outside for the whole tax year. If at all there are married couples, then the spouse should also be a U.S. Citizen or resident alien for the whole tax year.
Child Tax Credit – Generally, all the taxpayers are eligible to claim this type of Tax Credit, and is applicable to the children who are below 17. The maximum credit that any taxpayer will receive is about $1,000 per child. Any taxpayers receiving less than the committed credit will qualify into another bracket known as the Additional Child Tax Credit. You can again use the Interactive Tax Assistant to understand the terms and conditions as well as can determine if your child qualifies for this type of Credit.
Child and Dependent Care Credit – Taxpayers will also be eligible to claim if they have paid to care for one or more qualifying individuals. Dependent kids under the age of 13 are usually the ones who qualify for this type of Credit. Taxpayers should have compensated for care so that these individuals can search for work or could work. Using the Interactive Tax Assistant is also helpful to determine the eligibility criteria for a child to qualify.
Earned Income Tax Credit – Any taxpayers earning less than about $53,505 should be qualified for this type of tax credits. They would be able to get about 6% to 10% of reimbursement under this tax credit structure. Taxpayers will qualify with or without children. Using the EITC Assistant tool available in the IRS official website will help you determine the eligibility criteria to claim such type of tax credits. All the credits would an entire refund of what you have claimed and not portions, so be aware of what you are filing and do check the assistant tools available to determine in which type of tax credits you qualify to claim the refunds.