FREE CHILD TAX CALCULATOR
ESTIMATE YOUR CHILD TAX REFUND
The Standard Child Tax Credit refund for US citizens living abroad. You do not have to have lived in the United States or paid any US tax to qualify.
Where can I use a Child Tax Credit Calculator for 2024?
The Child Tax Credit (CTC) is a tax benefit that helps families within or outside the United States reduce their tax bill for each qualifying child. For 2024, eligible taxpayers can claim up to US$2,000 per child, with up to US$1,700 refundable through the Additional Child Tax Credit (ACTC).
The ACTC can be claimed by parents living outside of the United States.
What is the Child Tax Credit?
The Child Tax Credit is designed to assist families by reducing their federal income tax. If your total credit exceeds your tax liability, you may qualify for a partial refund.
How do I claim the Child Tax Credit?
- Meet the eligibility criteria (see below).
- File a US tax return (Form 1040) and attach Schedule 8812 to claim refundable credits.
- Provide your child’s Social Security number (ITINs are not accepted for this credit).
- Use tax software or consult a professional to ensure accuracy and compliance.
Eligibility Criteria:
- Age Test: The child must be under 17 years old by the end of the tax year.
- Citizenship Test: The child must be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security number.
- Dependent Status: The child must be claimed as a dependent on your tax return.
- Relationship Test: The child must be a biological child, stepchild, foster child, sibling, or a descendant of any of these.
- Residence Test: The child must have lived with you for more than half the year.
- Support Test: The child cannot have provided more than half of their own financial support.
- Income Limits: The credit begins to phase out if modified adjusted gross income (MAGI) exceeds US$200,000 for single filers or US$400,000 for married couples filing jointly.
For eligible taxpayers, the maximum credit per child is US$2,000, with up to US$1,700 refundable under the Additional Child Tax Credit (ACTC) for those with low tax liabilities.
– What’s the process? –
What happens if your CTC exceeds your tax liability?
If the Child Tax Credit is larger than your tax bill, you may be eligible for a refund under the Additional Child Tax Credit (ACTC).
- If your tax bill is lower than your CTC amount, the nonrefundable portion reduces your tax liability to zero, but the remaining credit is not refunded.
- If eligible, the refundable portion of up to US$1,700 per child can be received as a refund through the ACTC.
- To qualify for a refund, earned income must be at least US$2,500.
- The phaseout threshold begins at US$200,000 for single filers and US$400,000 for joint filers, reducing the credit by US$50 for every US$1,000 over the limit.
How does the Other Dependent Tax Credit work?
The Other Dependent Tax Credit (ODTC) is designed for taxpayers who support dependents who do not qualify for the standard Child Tax Credit.
Who qualifies for this?
- Dependents over 17 years old.
- Relatives, such as elderly parents, or non-relatives who meet dependent criteria.
- US citizens, US nationals, or US resident aliens with a valid Social Security number or ITIN.
The maximum credit is US$500 per qualifying dependent and is nonrefundable, meaning it can reduce tax liability but does not generate a refund.
What are the best tax calculators to use in 2024?
Tax calculators can help estimate tax liability, potential refunds, and withholding amounts. Several tools are available to assist different tax scenarios:
- IRS Tax Withholding Estimator – Helps determine proper W-4 withholding amounts.
- Self-Employed Tax Calculator – Calculates estimated quarterly payments.
- Crypto Tax Calculator – Computes taxes owed on cryptocurrency transactions.
- Tax Bracket Calculator – Identifies which tax bracket applies to your income.
When can I expect my tax refund with the Child Tax Credit?
The timing of your tax refund depends on several factors, including filing method and IRS processing times.
Expected Refund Timeline
- E-filing with Direct Deposit: Refunds are typically processed within 21 days of IRS acceptance.
- Paper Filing: Refunds may take six weeks or longer to process.
- Claiming the ACTC (Form 8812): The IRS holds refunds until mid-February to prevent fraud.
- Refund Status Updates: Track refunds through the IRS “Where’s My Refund” tool.
Need help on claiming the child tax credit refund?
A free consultation is a great way to learn more about your situation.
Let’s discuss how we can work together and give you an idea of the complexity, timeframe, and fees.
