What is the Child Tax Credit Calculator?

child tax credit calculator

If you're a parent, chances are you've got a lot on your plate. You're likely trying to balance work and family while ensuring your kids get everything they need.

The good news is that the government offers some financial help to parents with children under 17 with low or moderate income.

One of these programs, called the child tax credit, can be particularly helpful if you're a working parent because it allows you to receive a tax credit of up to $2,000 per child.

But how do you find out how much money you can get? By using an online child tax calculator!

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Use a child tax credit calculator to see how much money you can get back

If you're a parent, it's probably no surprise that the IRS offers some tax breaks. If you're looking to use these benefits and want to see how much money you might get back for a child, try out the child tax credit calculator.

To use it, enter your income and dependents' information into the calculator, and you'll receive an estimate of what kind of tax break your family is eligible for this year.

The amount of the credit is based on the parent's income and the number of qualifying children.

The child tax credit can help offset the cost of raising a child.

The child tax credit is one of the biggest benefits you can receive as a parent. It’s a tax credit, which means it can help offset your income tax liability and reduce your overall federal income tax bill.

The amount of the credit depends on your income and other factors, but it could be worth up to $2,000 per qualifying child if you file jointly with your spouse or if you file as single or head of household.

Child Tax Credit Eligibility Requirements

To be eligible for the child tax credit, a child must be younger than age 17 at the end of the tax year, must be claimed as a dependent on the taxpayer’s federal income tax return, and generally cannot have provided more than half of his or her own financial support during the year.

Additionally, the child must have a valid Social Security number to claim the credit. If a taxpayer has more than one child who meets these eligibility requirements, he or she can claim the child tax credit for each eligible child.

For example, if a taxpayer has two qualifying children, he or she can claim a $4,000 child tax credit. The maximum amount of credit that can be claimed per child is $2,000.

What is the income limit?

The Child Tax Credit income limits are as follows:

  • $150,000 if you are married and filing a joint return or if you are filing as a qualifying widow or widower;
  • $112,500 if you are filing as a head of household; or
  • $75,000 if you are a single filer or are married and filing a separate return.

Parents and guardians with higher incomes may be eligible to claim a partial credit.

The benefit is eliminated entirely at AGI levels of $95,000 for single filers, $135,000 for head-of-household filers, and $170,000 for married couples filing jointly.

Can I Get the Child Tax Credit if You Have No Income?

Yes, you do not need income to be eligible for the Child Tax Credit if your main home is in the United States for more than half the year. If you do not have income and do not meet the main home requirement, you will not be able to benefit from the Child Tax Credit

How much is the child and dependent care tax credit?

The child and dependent care tax credit covers work-related or school-related expenses while you're working or looking for work. You can claim up to $4,000 of expenses per child under 13.

The American Rescue Plan Act, which was signed into law on March 11, 2021, made the credit significantly more generous (up to $4,000 for one qualifying individual and $8,000 for two or more qualifying individuals).

However, taxpayers with an adjusted gross income over $438,000 are not eligible for this credit even though they may have previously been able to claim this credit.

Knowing how much you get for child tax credit can help with your finances

The child tax credit calculator can be helpful when you're trying to determine how much financial assistance your family will receive from the government.

While it can't make up for all of your costs, after all, there's always going to be some unexpected expenses when raising children, it may help offset the cost of raising a child.