The 2023 Fiscal Season is Underway
The 2023 fiscal season continues, with the Internal Revenue Service (IRS) accepting and processing tax returns for tax year 2023 since January 23. This year, taxpayers have until April 18 to file and pay their taxes. If they need more time, they can request an extension until October 16.
Claiming the Earned Income Tax Credit and the Child Tax Credit
Through their tax return, eligible taxpayers can request tax aid such as the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). One question that often arises is whether taxpayers can claim both credits at the same time. Here’s what you need to know.
Child Tax Credit (CTC): Requirements
The Child Tax Credit is a tax relief granted to taxpayers with dependent children under 17 years of age. To receive the CTC, the child must be related to the taxpayer, live with the claimant for at least six months during the year, and be a United States citizen, national or resident alien with a Social Security number.
In addition, the taxpayer must have adjusted gross income (Modified AGI) of $400,000 or less for married couples filing jointly and $200,000 or less for single filers or head of household. To find out more about how to claim the CTC, visit the IRS website.
Earned Income Tax Credit (EITC): Requirements
The Earned Income Tax Credit (EITC) is granted to certain low-income taxpayers with or without children. Eligible workers can claim from $560 dollars up to $6,935 in tax return taxes, based on eligibility criteria.
These are the eligibility requirements:
- Have worked and earned income less than $59,187
- Have investment income less than $10,300 in tax year 2022
- Have a valid Social Security number by the due date of your 2021 return
- Be a U.S. citizen or resident alien for all year
- Not filing Form 2555 (foreign earned income)
- Meeting certain rules if separated from your spouse and not filing a joint tax return
For more details on how to claim the EITC, visit the IRS website.
Can You Claim Both Credits?
If eligible, you can claim both the EITC and the CTC. However, to qualify for both, you must meet the eligibility requirements for each. If you’re not sure if you’re eligible or how to claim these credits, consult a tax professional or visit the IRS website for more information.
Conclusion
If you have dependent children under 17 and/or a low or moderate income, you may be eligible for the Child Tax Credit and/or the Earned Income Tax Credit. Make sure you understand the eligibility requirements for each credit and how to claim them. Don’t miss out on potential tax savings!
