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The push to overhaul the tax benefit comes more than two years after the expiration of the expanded Child Tax Credit, which bolstered the tax credit to as much as $3,600 per child, up from its current $2,000 per child.
The CTC can only reduce your tax to zero. If you owe less than $2,000 in taxes, you dont get any unused portion of the credit back as a refund. The Additional Child Tax Credit allows you to receive up to $1,600 of the $2,000 CTC per child as a refund for 2023 and 2024.
To determine the amount for line 13, youll need to complete the Credit Limit Worksheet A found in the Schedule 8812 instructions booklet (page 4). On line 14, enter the smaller of lines 12 or 13. This is your Child Tax Credit and Credit for Other Dependents.
If you received more than $11,000 in investment income or income from rentals, royalties, or stock and other asset sales during 2023, you cant qualify for the EIC. This amount increases to $11,600 in 2024. You have to be 25 or older but under 65 to qualify for the EIC.
Use Schedule 8812 (Form 1040) to figure your child tax credit (CTC), credit for other depend- ents (ODC), and additional child tax credit (ACTC). The CTC and ODC are nonrefundable credits. The ACTC is a refundable credit. Section references are to the Internal Revenue Code unless otherwise noted.
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The dependents birth certificate, and if needed, the birth and marriage certificates of any individuals, including yourself, that prove the dependent is related to you. For an adopted dependent, send an adoption decree or proof the child was lawfully placed with you or someone related to you for legal adoption.
8863 Credit Limit Worksheet PDF Details The worksheet is used to determine the maximum amount of the credit that the taxpayer is eligible to claim based on their income and the amount of qualifying education expenses they paid during the tax year.

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