What is a Child Tax Credit?
A Child Tax Credit is a form of tax relief substantiated by a governing body that is awarded in order to assist individual household responsible for the wellbeing of children produced; a Child Tax Credit is offered in certain jurisdictions, which result from a calculation with regard to the amount of children in a family in accordance to that household’s earned income.
What is the Policy with regard to a Child Tax Credit?
Although the standard by which individuals with children may qualify for these types of Tax Credits varies, each jurisdiction typically institutes a calculation protocol that regulates the rate of prospective Tax Credits in conjunction with the size of a respective family.
1. In the United States, the following parameters exist with regard to the awarding of Child Tax Credits:
• As of the end of the 2010 fiscal year, the rate for Child Tax Credits was lowered from $1K per child to $500 per child in any given household
• The acting qualifying rate with regard to earned income within households exists in the event that family – with children – income does not exceed $130K on an annual basis
• Children above the age(s) of 17 are considered to be ineligible as claimants for Tax Credits
2. In the United Kingdom, the following parameters exist with regard to Child Tax Credits:
• Households with an earned income falling below 58K pounds may receive Tax Credits amounting to 545 pounds per child
• Households with an earned income falling below 58K pounds may be eligible to receive Tax Credits valuing 1,090 pounds in the event that the child in question is under a year of age; this Tax Credit is applicable for every child in that particular household below 1 year of age
• Households considered to exist within a ‘lowered-income’ bracket may be eligible to receive additional Tax Credits valuing an additional 2,235 pounds per child in the event that the household income does not exceed 16,040 on an annual basis
Child Tax Credit Debate
The development of the Child Tax Credit program has incited debates existing on both international, as well as domestic levels. While lobbyists in support of awarding Child Tax Credit to large families maintain that this program assists in the substantiation and wellbeing of the children in question, opponents of this program maintain that a Child Tax Credit program rewards individuals for having children in lieu of any or all financial solvency – as a result, this debate has produced a fairly-polarized lobby with regard to its advocates and opponents.
Child Tax Credit Assistance
Individuals interested in investigating eligibility protocol, analyzing earned income, and the receipt of the most up-to-date legislature with regard to the Child Tax Credit program are encouraged to consult with an attorney or legal professional specializing in Tax Law, Finance Law, or Child Law; In addition to the undertaking of legal assistance, the Internal Revenue Service (IRS) – The Federal Department of the United States government that administers, maintains, oversees, and regulates the fulfillment of taxation – can be contacted through their toll-free telephone number: (800) 829-1040.