Welcome to our latest newsletter! The IRS has unveiled significant changes for the 2024 tax year, impacting various financial aspects. This credit can provide a maximum refund of $3,000 to $6,000 on qualified expenses, depending on your filing status.
We understand that balancing work and family life is a challenge unto itself, and tax time can often add to that stress, especially when you’re trying to make the most out of credits available to you. One common hurdle for many families is understanding and claiming the Child and Dependent Care Credit to its full potential. Read More.
As tax professionals specializing in a wide array of services, including Tax Planning, Real Estate Tax Planning, and Business Tax Preparation, we’re here to guide you through these changes. This tax season, let us take the worry off your shoulders. Our team of seasoned tax professionals has a deep understanding of the nuances in tax laws, ensuring that you can maximize your Child and Dependent Care Credit with ease and confidence.
What is the Child and Dependent Care Credit, you may ask?
Several states offer their own child tax credits, It’s a valuable tax credit that can save you thousands of dollars. It’s designed for working parents or guardians who spend money on childcare for children under 13, or for dependent adults, so that they can work or actively look for work.
Understanding the Child Tax Credit:
Learn about the federal tax benefit designed to provide financial support for taxpayers with children. In 2021, the Child Tax Credit underwent temporary modifications as part of the American Rescue Plan Act. These changes increased the credit amount to $3,000 to $3,600 per child, depending on age, and made the credit fully refundable.
How Much is the Child Tax Credit for 2023?
For the 2023 tax year, the Child Tax Credit is worth up to $2,000 per qualifying dependent child, with a potential additional child tax credit of up to $1,600. Explore income thresholds and understand how your credit may be impacted.
Who Qualifies for the Child Tax Credit?
Passing all seven qualifying tests is crucial. From age and relationship to family income, our guide breaks down the criteria that determine eligibility for the Child Tax Credit.
Claiming the Child Tax Credit:
Navigate the claiming process with our step-by-step guide. From gathering necessary information to completing Schedule 8812, we help you ensure accuracy and maximize your tax savings.
Other Tax Credits and Considerations:
Explore additional tax credits, including the Child and Dependent Care Credit and state-specific credits. Stay informed about changes in tax laws and plan for future tax years.
Empowering Financial Decision-Making:
Understanding these tax nuances empowers you to make informed financial decisions. For personalized advice tailored to your situation, our team at Ascent Tax & Advisory is here to assist. Navigating through tax complexities requires expertise, and we specialize in providing comprehensive solutions for individuals, businesses, and international clients.
As tax season approaches, seize the opportunity to reassess your financial strategy. Let’s make 2023 a financially savvy year for you!
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Discover eligibility criteria and how to claim the credit to maximize tax savings.
Don’t let another tax season pass by without claiming what’s rightfully yours. The Child and Dependent Care Credit is meant to give financial relief to hard-working families like yours, and we’re committed to making that a reality!
Reach out to us today to schedule a free consultation, and let’s put more of your hard-earned money back where it belongs – in your pocket!
Ascent Tax & Advisory specializes in understanding and addressing these challenges by offering a range of services designed to empower individuals, families and businesses with the financial tools you need. Follow us for more such insights!