What is the child tax credit?

The Child Tax Credit is a tax credit in California that offers relief to taxpayers who have dependents under the age of 17. This credit reduces the amount of money the taxpayer owes in Federal taxes. The credit is a nonrefundable credit, which means that it doesn’t reduce the taxpayer’s tax liability beyond zero. The Child Tax Credit is worth up to $2,000 per qualifying child, depending on the taxpayer’s income. The credit is subject to income phaseouts and begins to decline when the taxpayer’s income reaches a certain amount. The amount of the credit and the income phaseout levels vary from year to year. In addition to the Child Tax Credit, California also offers an additional dependent exemption for each qualified dependent on the taxpayer’s return. This exemption reduces the amount of taxable income and can result in a lower overall tax liability. Finally, California allows taxpayers to claim the standard deduction, regardless of whether they have dependents or not. The standard deduction is available to all taxpayers, and is indexed for inflation each year. In 2020, the standard deduction is up to $24,800 for married taxpayers filing jointly, or $12,400 for single taxpayers and married taxpayers filing separately. Overall, the Child Tax Credit is a great way for taxpayers in California to reduce their Federal tax liability. It can provide relief to those with dependent children, and the additional dependent exemption can help reduce taxable income. The standard deduction is also available to all taxpayers, regardless of their family size.

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What is the child tax credit?

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