The Child Tax Credit explained

If you are questioning in regards to the latest growth to the Child Tax Credit, and who’s eligible, Lisa Greene-Lewis, CPA and TurboTax professional, explains what you need to know. Watch the video above or learn the transcript under.

Video transcript:

Tracy Byrnes: Well, there’s been a number of buzz across the Child Tax Credit currently so let’s attempt to clear the air. Lisa Greene-Lewis, CPA, TurboTax professional is right here with us proper now. Lisa, initially, are you able to clarify to us who, in concept, is a toddler within the eyes of the IRS? And what is that this tax credit score?

Lisa Greene-Lewis: Yes. So it must be your dependent baby. And they need to be beneath 17. So to qualify as a dependent, it’s a must to present over half of their help. There’s additionally some revenue necessities as a way to get it. So in the event you’re single, you may’t make greater than $200,000, (married, submitting collectively, $400,000) to get the total credit score. Your baby additionally must be a U.S. citizen or a U.S. nationwide.

Tracy Byrnes: OK, so as soon as you determine whether or not you are eligible or not, then what precisely is the credit score? What do you get again?

Lisa Greene-Lewis: Yeah, so the credit score is as much as $2,000 per dependent baby beneath 17.

Tracy Byrnes: And are there revenue limitations on that?

Lisa Greene-Lewis: To get the total credit score, it is $200,000 single and $400,000 married, submitting collectively.

Tracy Byrnes: Perfect. And there could also be the reason why folks ought to maintain off on submitting. Why is that?

Lisa Greene-Lewis: There’s no purpose, really. I do know there’s been a number of buzz about there being an growth to the kid tax credit score. But the IRS commissioner even has come out and inspired folks to file and do not wait. He has stated that, ought to it increase, the IRS will modify returns if they’re impacted. So there’s nothing that filers must do on their finish. So I might undoubtedly say, go forward and file. Especially, it’s possible you’ll be eligible for different credit to your youngsters, just like the Child and Dependent Care Credit, the Earned Income Tax Credit, which is as much as $7,430 for a household with three youngsters.

Tracy Byrnes: And once more, these issues get difficult and complicated. There’s schooling credit in there too. Is there a straightforward method to hold this all collectively and to maintain it straight?

Lisa Greene-Lewis: Yes. So you may come to TurboTax. And now we have our TurboTax Live Experts. And you may both ask them questions alongside the best way. And they’ll assessment your return earlier than you file. Or you may totally hand your taxes off to them. And then new this yr, you may meet with a tax professional in your space, a neighborhood tax professional. And they’ll do your taxes for you.

Tracy Byrnes: Those youngsters are costly. So if you may get a bit again from the IRS, why the heck not? Lisa Greene-Lewis, TurboTax professional and CPA, thanks for all that.

Lisa Greene-Lewis: Thank you for having me.