Many taxpayers dislike having to file taxes. On many occasions, they prolong that responsibility, since they do not have the adequate motivation to do so. If you get more than $10,000 in tax refunds isn’t enough of an incentive to file your taxes, so we don’t know what it is. We will tell you what you have to do to qualify for three of the most important tax credits this season and with which you could receive that amount in cash.
The Internal Revenue Service (IRS) has different tax supports to ensure that people who earn less money in the United States do not go through greater financial complications. The government has a series of tax deductions and credits with which They can reduce their bill or even receive a tax refund.
Tax credits have a series of requirements that must be met in order for them to be applied to the tax return. The reality is that taxpayers who have children could have an advantage ahead of them, since can qualify for three tax credits (Child Tax Credit, Earned Income Tax Credit and the Child and Dependent Care Credit) with which together they could add an amount of up to $11,130 dollars in refundsthat is, in cash for your pocket.
So that you know how to reach this figure, at SoloDinero we will tell you the matching eligibility criteria in each of these tax credits.
1. Child Tax Credit (CTC): $1,600 dollars
The value of the current Child Tax Credit (CTC) is $2,000 for each eligible minor. If you do not have a tax obligation, This credit is refundable only for up to $1,600 dollars. This benefit can be claimed for each eligible minor who has a valid United States Social Security number.
To claim this credit, you must have children under age 17 at the end of the 2023 tax year and who have lived with you for more than half the year. It is also important to take into account that you must have a minimum adjusted gross income (AGI) of $2,500. If you do not have that minimum amount of income, you will not be able to qualify for the refund. The income limit is $400,000 for married couples filing jointly and $200,000 for other taxpayers.
2. Earned Income Tax Credit (EITC): $7,430 dollars
For tax year 2023, the Earned Income Tax Credit (EITC) has different amounts, depending on the eligibility criteria:
- $600 dollars if you do not have a qualifying minor dependent;
- $3,995 dollars if you have a qualifying minor;
- $6,604 dollars if you have two qualifying minors; and
- $7,430 dollars if you have three or more qualified minors.
To get the maximum amount, all taxpayers must have earned less than $63,398 in 2023. Your qualifying children can be up to 17 years old.
By meeting these requirements, You would also get the CTC and a minimum refund of $9,030 dollars would be addedan amount that can increase, depending on the number of children under 17 years of age you have, with whom you could add an extra $1,600 dollars for each one.
3. Credit for the Care of Children or Dependents: $2,100 dollars
Those who paid for the care of one or more people qualified to go to work or study full-time, or go out to look for a job, and whose income is within the limits set by the IRS qualify for the Child Care Credit or Dependents.
Up to $3,000 dollars may be claimed for expenses incurred for the care of a minor or dependent who cannot care for themselves, and up to $6,000 dollars may be claimed for expenses incurred by two or more qualified minors or dependents. Depending on what the taxpayer’s income was, The IRS will give a credit of up to 35% of the amounts mentioned.
In other words, This credit can generate a maximum credit of $1,050 for a qualified minor or dependent and a maximum credit of $2,100 for two or more qualified minors or dependents.
If you get the maximum amount of the Child or Dependent Care Credit and get the previous $9,030 with the CTC and the EITC, you would be receiving a refund of $11,130 dollars or even more.
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2024-02-04 17:21:47
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