How Much Do You Get Back in Taxes Per Child?

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Are you wondering how much do you get back in taxes per child? 

Well, that’s sort of a winded question with many angles of approach. Nonetheless, let’s discover the answer together. 

In this article, we will cover the Child Tax Credit, the Child and Dependent Care Tax Credit, and the Earned Income Tax credit. 

Keep reading to find out how they are relevant to your question.

The Child Tax Credit

The Child Tax Credit offers $2000 per qualified dependent child of 16 years of age or younger towards the end of a calendar year. There is also a $500 credit, which is non-refundable for qualified dependents who are not children.

As this is a tax credit, it reduces your tax bill on a $ for $ basis. Up to $1400 is refundable. Meaning it can reduce your bill to zero, and you can even get a refund on anything left over.

To take advantage of the credit, your adjusted gross income should be under: 

1. $400000 for a married couple filing jointly. 
2. $200000 for everybody else.

However, there are some additional eligibility requirements, which are:

1. You had to have provided half of the support for the child during the last year. 
2. The child must have lived with you for at least half of the year.
3. The child has to be 16 years of age or younger. 
4. The child is not able to file a joint return.

The IRS has this information in detail, so it’s best to take a look at those. View more information here. In any case, it’s best to connect with a specialist who can help you out with the optimal filing process for you. 

The Child and Dependent Care Tax Credit

The Child and Dependent Care Tax Credit allows you to get up to 35% of $3000 for child care and additional costs for any child under the age of 13. It also covers a disabled spouse or parent, or any other dependent for you to work. 

The percentage of the expenses allowed helps decrease for high-income earners, meaning the value of the credit depletes – but it does not disappear fully. The credit is non-refundable, meaning it can reduce the bill but it cannot provide you with a refund from the leftover credits.

Some states have their own version of this tax credit. Usually, consisting of a specified percentage of the federal credit, but they also have the power to adjust eligibility, expand threshold, or provide incentives.

To take advantage of the credit, there are some eligibility requirements, such as:

1. A child has to be 12 years of age or younger at the time of care being provided. 
2. Spouses and dependents have no age requirements. But they must be incapable of self-care, hence living with you for at least half of the year. 
3. You have to file jointly if you’re married. 
4. You have to have some sort of earned income. Dividends and investments don’t count. 

You can’t claim this credit for any payments to a care provider who is:

1. A parent of the child
2. A dependent listed on a return
3. Your spouse
4. A child who is of 18 years of age or younger. Even if they are not listed on the return

However, keep in mind that some qualified expenses goes further than physical care, and can cover household expenses, such as cleaning and cooking assistance. But keep in mind, the people providing this care cannot be the parent of the child.

The Earned Income Tax Credit

The Earned Income Tax Credit has been designed to benefit all sorts of working people who have a low income. It has variable support for families with children, so you need to take a look at the official sites to figure it out. 

In order to qualify for this tax credit, you have to:

1. File a tax return to get the credit, even if you don’t owe tax, and are not obligated to file a return.
2. The tax credit is refundable. If you are due to receive a credit of $6000, but you owe $2000, you will get a check for $4000. 
3. Tax software will help you calculate the credits properly for you.
4. Some states offer an altered version of the tax credit for families that work, so you can get that credit as well.

That’s about it for the Earned Income Tax Credit. Nonetheless, there are a variety of other minuscule credits that can be used to refund on your tax filing. However, it’s best to connect with an experienced accountant or tax lawyer who can help you make the best possible decisions. Also, most online tax filing softwares can connect with you an experienced specialist in the realm of your specific question.

How Much Do You Get Back In Taxes Per Child? As Much As You Qualify For.

Now that you have discovered all of the necessary information for filing tax returns on your children, you can make sure to receive some form of support for your situation. 

And the best answer to the question of “How much do you get back in taxes per child?” is how much you qualify for. So depending on your unique circumstances, the refund will vary based on that. 

Some families can receive a refund on the upper-scale of that metric, while others don’t qualify at all. Also, keep in mind that the support capability of a tax credit will depreciate with any increases in income. And in reality, these tax credits are designed to help low-income families as a priority. 

If you’re interested in learning more about similar topics, check out some of our articles. 

Courtney P.

I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!

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