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Child Tax Credit Extension for Ensuring Better Standards Of Living for the Children

Every child has a right to healthy and proper life that entitles them to compulsory education, good health and other necessary requirements. And in order to ensure this for Child Tax Credit Extension for Tax Year 2014 visit http://childtaxcreditextensionfortaxyear2014.blogspot.com/, the Child Tax Credit plan has been introduced that enables the parents who have minor children that is children under the age of 17 years to enjoy a tax cut on their income. The good news is that the parents have been enabled to enjoy an additional tax cut on their incomes and that has been extended to up to $1000 depending on the income of the parents annually to another five years. This particular type of tax exemption is valid only for those tax payers who can prove that they are the legal guardian to a minor who is dependent on them financially.

All you need to know about it

The tax credit doesn’t though put a limit to the number of children who are eligible for enabling the tax cut. But nonetheless if a taxpayer has more than 4 children then he or she can check out the Alternative Minimum Tax. There are a few criteria that are required to be fulfilled to derive the benefits of this tax cut. These requirements are that the taxpayer must be the legal guardian of the child or the children. The child is also required to live at the guardian’s home for no less than 6 months of that tax year, the child should be within 17 years of age, and the child should not be capable of contributing even half of his or her living expenses.

It is also required that the child is either a citizen of the US or a resident alien of the US and that the child is also younger than the tax payer. There are other requirements regarding the income of the guardian as well which is essential for the taxpayer to fill in order to get the tax benefits.

What happens mostly with tax returns is that when all the tax credits and deductions combined together they often reduce the tax amount to zero and in such cases the tax payer doesn’t get any tax return. But such is not the case with this child tax credit plan. So even if the tax deductions brings down the tax amount to zero the tax payer would still be eligible to get a refund upto a certain amount of the income based on a few criterion.