$3600 Child Tax Credit Payment – As a result of the Child Tax Credit (CTC), parents and caregivers can reduce their tax rates and receive a refund of up to $3600 per child.
A maximum of $3600 may be refunded per qualifying child, although the credit is not 100% refundable, which means the entire $3600 cannot be refunded as cash.
There is a possibility of refunding a portion of the CTC.
What are the CTC rules
There are several clauses and rules attached to the tax credit, including:
- A child must be able to be claimed as a dependent on a tax return.
- Child must have lived with claimant for half of the year before applying.
- In the past year, you must have provided half of the child’s financial support.
- Social Security numbers must be valid for the child.
- Children must be sons, daughters, foster children, siblings, half-siblings, step-siblings or descendants of these people, such as grandchildren.
What are the income limits
MAGI (Modified Adjusted Gross Income) is used for joint claimants, but is capped at $400,000 USD or $200,000 for other filers.
In the event that an individual’s MAGI exceeds this threshold, they can still claim, but only as a partial credit, since $50 is deducted for every $1000 that their MAGI exceeds.
In this case, joint filers with a MAGI of $4005,000 would be eligible for a reduced credit of $1750 since they earn only $5,000 above the threshold.
When is the payment due CTC?
Most taxpayers have until Monday, April 18, 2022, to file their taxes. Tax season started on January 24, 2022.
Most taxpayers should receive a refund within 21 days after electronically filing if they choose direct deposit, and if there are no issues with their return. Paper returns should be avoided whenever possible to avoid delays.
