Children are expensive, but luckily they can give you a break — a tax break of course.
With all of the changes that the 2018 tax year brings us, the Child Tax Credit (CTC) is one of them. Whether you’re a parent, grandparent, or guardian, when tax time comes around you can claim your dependents to your advantage.
Here’s what you need to know for this tax season.
Who qualifies for the CTC?
Unfortunately, you can’t just receive the CTC for just having a dependent. You have to meet certain requirements for your dependent to be a “qualifying child.” These are the following conditions they will need to meet: Continue reading “The Child Tax Credit Changes for Your 2018 Taxes!”
Do you feel like you’re playing the waiting game?
You might be wondering how long it takes for you to receive your refund. Typically, the IRS issues tax refunds in less than 21 days as long as there are no discrepancies.
If you are due a refund, it may take longer depending on the situation or time your financial institution takes to direct deposit or mail it to you.
Here are some situations that may prevent you from receiving your refund:
Continue reading “What is the Tax Refund Schedule for 2018?”
Feel like the coach of a small football team? The IRS gets it!
Whether you have just one on the way or five and counting, kids are expensive. That’s why you should take advantage of tax cuts whenever possible. In addition to claiming them as dependents, you may also qualify for some other credits. One that could end up benefiting you substantially is the Additional Child Tax Credit. Let’s see if this one is for you!
What is the Additional Child Tax Credit (VS. the Child Tax Credit)?
You’ve probably heard of the Child Tax Credit. I’ll sum it up for those of you who don’t (but also check out our other article which goes into more detail, “How to Claim the Child Tax Credit”). Basically, it is a credit that can reduce your tax liability up to $1,000 per qualifying child listed on your tax return. This credit is NON-refundable, meaning that it will reduce your tax liability to $0 but will never overflow into a refund for you.
Now that we’ve covered the Child Tax Credit, you’re probably wondering what the Additional Child Tax Credit is all about, right? This is the refundable credit that will fork over the difference that you weren’t able to claim from the Child Tax Credit.
Let’s take a look at an example:
Cindy and Lou have three qualifying kids listed on their joint tax return. Their tax liability is $2,500. After applying their Child Tax Credit at $1,000 per child, they were able to get their tax liability down to $0. They then figured out that they qualified for the Additional Child Tax Credit. Cindy and Lou were able to claim that additional $500 as a tax refund!
Here’s the math: $2,500 IRS tax liability – $3,000 total Child Tax Credit for three kids = – $500 Continue reading “How to Qualify for the Additional Child Tax Credit”