Woman surprised with her hands on her face in front of a background of dollar bills. — This tax benefit is great for many families | Dean Drobot, en.e-noticies.cat

Camara — This tax benefit is great for many families | Dean Drobot, en.e-noticies.cat

Social Security Brings Joy to Americans: $2,000 if They Meet This Requirement

This Tax Gesture by Social Security Has Been Well Received by Thousands of American Families: Take Note

20/03/2025 11:29:00h

Miguel Cuartas Ortego

The Social Security in the United States offers families significant economic assistance through the Child Tax Credit (CTC). This tax benefit allows taxpayers with dependent children to reduce their tax burden by up to $2,000 per qualifying child.

What Is the Child Tax Credit? Requirements to Qualify for the CTC

The CTC is a tax credit designed to alleviate the economic burden on families with dependent children. This credit directly reduces the amount of taxes a family must pay, providing significant financial relief. To be eligible for the CTC, the following criteria must be met:

Qualifying Child: The dependent must be under 17 years old at the end of the tax year and must be a biological child, adopted child, stepchild, or a dependent under legal guardianship.
Relationship and Residency: The child must have lived with the taxpayer for more than half of the year. Must be a citizen, national, or resident of the United States.

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Pay Attention to What You Must Fulfill to Obtain This Aid | Getty Images Signature, filadendron, Pexels, Bongkarn Thanyaki

Dependency: The child must not provide more than half of their own support during the year.
Adjusted Gross Income (AGI): The full credit is available for taxpayers with an AGI of up to $200,000 (or $400,000 for married couples filing jointly). Above these limits, the credit is reduced by $50 for every additional $1,000 of income.

Amount of the Credit and Its Refundability

The maximum value of the CTC is $2,000 per qualifying child. However, for the tax years 2024 and 2025, the credit is not fully refundable. This means that if the credit exceeds the tax liability, the tax bill is reduced to zero, but the excess is not received as a refund.

Nevertheless, families may be eligible for the Additional Child Tax Credit (ACTC), which is partially refundable. This allows families to receive up to $1,600 per qualifying child as a refund, even if they owe no taxes.

Process to Claim the CTC

To claim the CTC, taxpayers must complete Form 1040 and attach Schedule 8812, where qualifying children and other dependents are detailed. In addition to the CTC, there are other tax credits that can benefit families. There is the Child and Dependent Care Credit, which helps cover care expenses so parents can work or look for employment.

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Here's How You Can Claim the CTC | Monkey Business Images

Meanwhile, the Earned Income Tax Credit (EITC) benefits low to moderate-income workers and families. Providing an additional credit based on income and the number of children.

Maximum Importance for Families

The CTC represents significant assistance for families, as it directly reduces the amount of taxes owed. The Social Security allows families to have more resources to cover basic needs, education, and other essential expenses. This credit is especially crucial for low and moderate-income families, providing financial relief that can improve their quality of life.

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