One of the most sought after tax benefits by parents in the United States is the Child Tax Credit (CTC). However, many beneficiaries wonder whether they can claim it even if they are not able to generate income in 2023.
The truth is, in recent years, the CTC has made some changes to reduce the financial burden on families with children.
Therefore, low-income families or those who for some reason had no income in the tax year 2023 can also apply. This will be with the aim of achieving an ACTC of $1600.00 USD.
The Additional Child Tax Credit (ACTC) is part of the changes approved for the years 2023 and 2024. Through this, families can get $1,600.00 USD in cash out of $2,000.00 USD which includes tax benefits.
It is worth clarifying that after the CTC value increased during the pandemic, it has now returned to its normal previous level. That is, its present value is $2000.00 USD.
Now, those who have not generated income and intend to apply to ACTC to receive benefits must file Form 8812.
What are the requirements to qualify for CTC?
A child should be below 17 years of age at the end of that year to be eligible for this benefit. Additionally, you must meet relationship criteria established by the IRS and contribute no more than half of your own financial aid annually.
Combined, the minor must have lived with the applicant for more than half a year and must be a US citizen, naturalized or resident alien in North America.
Finally, the applicant should not file a joint return with her husband or file alone to claim refund of the withheld income tax. The same estimated tax is paid.
Similarly, the income limit for obtaining CTC as an individual taxpayer is $200,000.00 USD. On the other hand, the maximum income of $400,000.00 USD is for married people filing a joint return.
