Child Tax Credit
Child Tax Credit
The Child Tax Credit (pronunciation: /ʧaɪld tæks krɛdɪt/) is a Tax credit provided by many governments to help families with the cost of raising children.
Etymology
The term "Child Tax Credit" is derived from the English words "child", "tax", and "credit". "Child" (Old English cild) refers to a young human being below the age of puberty or below the legal age of majority. "Tax" (Middle English taxe, from Old French taxer, from Latin taxare 'censure, charge') is a compulsory contribution to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions. "Credit" (Middle English: from Old French credit, from Latin creditum 'something entrusted to another, a loan', from credere 'believe, trust') in this context refers to an amount of money that is added to an account.
Overview
The Child Tax Credit is a benefit that may reduce the amount of income tax owed by parents or guardians of children or dependents. The credit is designed to help families manage the costs associated with raising children. The amount of the credit varies depending on the number of qualifying children, the taxpayer's income, and the taxpayer's filing status.
Qualifying for the Child Tax Credit
To qualify for the Child Tax Credit, a child must meet several requirements. These include age, relationship, support, dependent status, citizenship, length of residency and family income. The child must be under the age of 17 at the end of the tax year, must be claimed as a dependent on the taxpayer's federal tax return, must be a U.S. citizen, U.S. national, or U.S. resident alien, and must have lived with the taxpayer for more than half of the tax year.
Related Terms
See Also
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