Americans look for ways to lower their tax bill or increase their return by claiming one or more IRS tax credit every season.
One of the most frequently claimed tax credits relates to children, as the Child Tax Credit and the Credit for Other Dependents appear identical but are not.
Credit For Other Dependents
The Internal Revenue Service (IRS) allows taxpayers with dependents of any age, including those older than 18 years old, to claim the Credit for Other Dependents on their tax return.
In order to be considered a dependent for tax purposes, the individual in question must be in possession of either a Social Security number or an Individual Taxpayer Identification Number, regardless of whether or not they are related to the taxpayer by marriage or by blood.
Now that tax season has arrived, it is easy to become overwhelmed by all the forms and applications. Tax season can be stressful, but USA TODAY has you covered with articles and advice that should help you get through it with minimal stress.
Many new tax credits and deductions are available to parents and guardians, depending on their income levels.
The maximum tax credit that may be claimed for each eligible child is $2,000 for children under the age of 5 and $3,000 for children aged 6 through 17. In addition, unlike the previous year, you will not be able to receive a portion of the credit in advance.
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How To Claim Child Tax Credit In 2023?
To be eligible for the benefits, you must file Form 1040, United States Individual Income Tax Return, and list all of your dependents, including your children.
You must also complete Schedule 8812 for any qualifying dependent children or other children.
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