Question

Question 1 (1 point) For tax years beginning after 2017 and before 2026, the initial child tax credit equals $2,000 for a dependent child under the age of 17. 1) True 2) False

Answer 1

For tax year beginning after 2017 and before 2026 , the initial tax credit equals $ 2000 for a dependent child under the age of 17.

Its true

Explanation :

The Child Tax Credit ( CTC ) provides a subsidy to families of upto $ 2000 per child age 17.

The Tax legislation passed in December ,2017 doubled the Child Tax Credit from $ 1000 to $ 2000 with the 2018 tax year until the end of 2025.

Most of the parents and guardians of US Citizenship of children under age 17 can use the Child Tax Credit            to reduce their taxable income for the year.

Now the maximum amount to be claimed has been raised to $ 2000 ,which was doubled in year 2018 and it was earlier $ 1000.

Eligibility for claiming the $ 2000 Child Tax Credit , following criterions should be followed –

• Be under age 17 at the end of tax year
• Be a US Citizen , as per IRS Publication 972
• Have lived with the taxpayer for more than half of the year and
• Not have provided more than half of his own financial support