What Is The Child Tax Credit For 2020?

The Child Tax Credit is a tax credit available to families with at least one qualifying dependent child. The credit helps families save money on their taxes. The Child Tax Credit is a refundable credit that can be used to reduce tax liability for taxpayers, or a refundable portion of the credit may be returned directly to the taxpayer.

What Is The Maximum Amount Of The Credit?

The maximum amount of the Child Tax Credit for 2020 is $2,000 per qualifying dependent child under the age of 17. This can be applied for up to three qualifying children. The tax credit begins to phaseout at $400,000 for married couples filing joint returns, and $200,000 for all other filers. In addition to the $2,000 Child Tax Credit, there is a $500 nonrefundable credit amount for each qualifying child under the age of 17. This is known as the Additional Child Tax Credit.

How Do You Qualify For The Credit?

In order to be eligible for the Child Tax Credit, you must meet certain requirements. You must have a qualifying dependent child under the age of 17. This can be applied to your taxes each year. In addition, you must meet the income requirements to receive the maximum amount of the credit. The income level cap for the Child Tax Credit for 2020 is $400,000 for married couples filing jointly, $200,000 for all other filers, and $240,000 for heads of household.

The Child Tax Credit can be an invaluable tool for reducing your tax liability. Eligible taxpayers can receive up to $2,000 in tax credits for qualifying dependent children under the age of 17. In addition, the Additional Child Tax Credit of $500 can be taken for qualifying children as well. For many families, the Child Tax Credit is a valuable tool for reducing their tax liability and getting more money back on their taxes.