One of the most anticipated tax benefits for parents in the United States is the Child Tax Credit (CTC). However, many beneficiaries are wondering if they can claim it even if they do not generate income in 2023.
The truth is that, in recent years, the CTC has made some changes to reduce the financial burden on households with children.
Therefore, families with low income or who, for some reason, have no income in the tax year 2023 can also apply. This is, with the goal of receiving ACTC of $1600.00 USD.
The Additional Child Tax Credit (ACTC) is part of the changes approved for the years 2023 and 2024. Through this, families will receive $1,600.00 USD in cash, of the $2,000.00 USD that constitutes the tax benefit.
It is worth clarifying that after the increase in the value of CTC during the pandemic, it has now returned to the usual levels before. In other words, its current value is $2000.00 USD.
Now, those who do not generate income and intend to apply to ACTC to receive benefits must complete Form 8812.
What are the requirements to be eligible for CTC?
For a child to be eligible for this benefit, they must be under 17 years of age at the end of the year. In addition, you must meet the relationship criteria established by the IRS and not contribute more than half of your own financial support each year.
Together, the minor must have lived with the applicant for more than half a year and be a US citizen, naturalized or foreign resident of North America.
Finally, the applicant does not need to file a joint return with her husband or file it alone to claim a refund of withheld income tax. This is also the estimated tax paid.
Likewise, the income limit to claim CTC as an individual taxpayer is $200,000.00 USD. On the other hand, the maximum income of $400,000.00 USD is for married couples filing a joint return.