Child Tax Credit - Everything You Need to Know
The Child Tax Credit is a tax benefit given to parents or guardians of children in America to help offset the cost of raising kids. This is granted to American taxpayers for each qualifying dependent child. This was exclusively designed to help taxpayers support their families in raising each and every dependent child.
For the tax year 2021, the Child Tax Credit was fully refundable. This meant that the guardian of a parent can claim this tax credit even if they have not earned any income last year or do not owe any taxes to the government. So, a parent can claim the child tax credit for any children below 17 years of age.
How to qualify for Child Tax Credit?
In order to qualify for the child tax credit, a person must have a blood relationship with the child or official guardians of the child. Also, the age of the child must be 17 years or below 17 years to claim the Child Tax Credit. Qualifying dependents must be your son, daughter, adopted child, foster child, stepchild, younger sibling, stepsibling, or a descendent of any of them (such as your niece, nephew, or grandchild).
No earning is required to claim for the Child Tax Credit, but the parent must have a y social security number (SSN) or an individual taxpayer identification number (ITIN). Any children you claim must have a valid SSN to get the credit.
In case the child does not have a valid SSN but does have an ITIN, the credit can be claimed for other dependents. An amount of $500 which is non-refundable is credited for dependents who do not qualify for the Child Tax Credit, such as dependent parents and other relatives or dependents living with you who are unrelated to you.
How does NSKT Global help in Child Tax Credit?
NSKT global is a global consulting firm that helps in filing the Child Tax Credit. We also help in qualifying for the credit and applying for advance child tax credit. We have a team of certified public accountants, certified fraud examiners (CFE), certified Sarbanes-Oxley experts (CSOE), Business Advisers, Internal Auditors, Data scientists, and IT experts. We extend all kinds of help to our clients and assist them at all possible junctures of their business.