Business, Legal & Accounting Glossary
In the United States, a taxpayer can claim a $700 per child tax credit if he has a “qualifying child” living with him. According to the Motley Fool, the child must have a Social Security number and be:
The child tax credit is not available to taxpayers whose modified adjusted gross income exceeds $110,000. The credit will increase to $800 per child in 2009 and to $1000 per child in 2010 under the terms of the Economic Growth and Tax Relief Reconciliation Act of 2001.
Negative Population Growth has proposed eliminating the child tax credit for children born after a specified date in order to encourage smaller families.
In the United Kingdom, a family with children and an income below about £58,000 can claim child tax credit on top of child benefit. For those with an income below £50,000, this is worth £545 a year as a family element (£1,090 if they have a baby under 1 year old).
For those with an income below about £13,910, there is an additional £1,690 per child per year, and this is tapered away at a rate of 37% as income rises. The tax credit is “non-wastable” – i.e. it is paid whether or not the family has a net tax liability – and is paid in or out of work. Higher rates are paid for disabled children. It is integrated with the working tax credit, which also provides support for childcare costs.
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This glossary post was last updated: 13th February, 2020 | 0 Views.