Can you get child tax credit if you have no income 2024?
Tax season is coming to an end, and as you hurry to finalize your return, find out how you can claim the Child Tax Credit without having generated income last year.
There is less than a week to submit your federal tax return on time. This year returns are due on Monday, 15 April, and for those who don’t believe that they will be able to make the deadline, extensions can be requested.
Your tax return not only reports your income to the IRS, but it also allows you to claim various tax credits if you are eligible. One of the most popular tax credits available to eligible filers is the Child Tax Credit (CTC). It is designed to provide financial assistance to low- to moderate-income parents. The tax agency offers up to $2,000 for each dependent aged between six and 17 years old. To qualify for the credit, parents must meet an income threshold. If your annual AGI exceeds $200,000 for individuals and $400,000 for couples filing jointly, the IRS will reduce the credit by $50 per $1,000. But what happens if your income is really low? Can you still apply for the CTC?
Can you claim the Child Tax Credit without having generated income in 2023?
Turbotax, a company that provides accounting solutions for tax filing, has reported that the IRS has made some adjustments to offer assistance to those who need it most. One of these changes is the introduction of the Additional Child Tax Credit (ACTC), which allows low-income parents to apply for a refund of $1,600 of the $2,000 available in the CTC.
To put it simply, the ACTC extends the CTC to families who do not meet the minimum income threshold or have recorded very little income throughout the year. According to the tax preparation company, families interested in this must have a minimum income of $2,500, including wages, compensation for self-employment, or disability payments. Unearned income, such as pensions, social security, unemployment benefits, or child support, will not be counted.
How to apply for the ACTC?
For families to apply for the ACTC, they must meet the following eligibility requirements:
- Have a child under the age of 17 at the end of the tax year, who has a valid Social Security number
- Verify relationship and residence
- The child must not provide more than half of his or her own support
- The child must have lived with you for more than half of the tax year
- The child must be claimed as a dependent on your return
Before applying, check if you qualify based on these criteria. If you believe you are eligible for ACTC, you can file Form 8812 on your tax return. For more information, visit the section on child tax credits on the official IRS website.