IRS offers $2,000 checks for eligible families

Millions of American families may soon receive checks as part of the Child Tax Credit (CTC) program. This program allows eligible parents to reduce their federal taxes by up to $2,000 for each qualifying child. However, it is important to note that this amount is a tax credit, not direct cash. The credit is applied to any outstanding taxes owed, and it is nonrefundable, meaning it won't provide a refund if it exceeds the taxes owed. To qualify for the CTC, several conditions must be met. The child must be listed as a dependent on the parent's tax return and must be under 17 years old by the end of the previous tax year. The child should be related to the taxpayer in specific ways, such as being a son, daughter, brother, sister, or grandchild. Additionally, the child must have lived with the taxpayer for more than half the year and must have a valid Social Security Number. Income limits exist under which the full credit amount can be received. For single filers, the CTC decreases for incomes above $200,000. Joint filers experiencing incomes exceeding $400,000 will also see a reduction. Parents may also be able to get additional funds through the Additional Child Tax Credit (ACTC), which can provide refunds of up to $1,700 after taxes owed are reduced to zero. To access this credit, parents can use Form 1040 or 1040-SR when filing their taxes. As the federal tax deadline of April 15 approaches, taxpayers should be aware of different income types that may not be taxed. It's crucial to read the details carefully to avoid unexpected fees, and there are options available for those needing an extension on their taxes.