You’re not accustomed to reading an article about the intricacies of the tax law and walking away ready to throw down. gettyTo understand what’s at stake, let’s take a look at the current construction of one of the primary tax benefits of having a kid – the child tax credit (CTC). Current Child Tax Credit RulesThe CTC has been around since 1997, and its purpose is clear: Congress recognizes that taxpayers with children have to pay for necessities like food, clothing, and Nintendo Switch V-Bucks, leaving less cash lying around to satisfy their annual income tax bill. After reduction for the $2,000 CTC that H&W can claim for each child, their final tax liability will be $6,000. But what if H&W’s tax bill is only $1,000 before the $4,000 credit?

Source: Forbes February 22, 2021 13:25 UTC