IRS Publication 972
Candlefocus EditorThe form is no longer in use from tax years 2021 and onward. It has been replaced by the Child Tax Credit Worksheet, to calculate both qualified dependants and income levels for taxpayers. There are upper-income limits on eligibility for the credit, so it’s important to make sure to check with the Internal Revenue Service when preparing taxes.
The Child Tax Credit is a valuable benefit for taxpayers with children and could potentially reduce the amount of taxes owed. The amount of the credit begins to phase out at around $200,000 for a married couple filing jointly, and $400,000 for those filing separately. To ensure accurate filing, the use of Publication 972 was helpful when calculating the credit physically.
For 2020 tax season, the American Rescue Plan Act of 2021 temporarily increased the Child Tax Credit from $2000 to $3,000 per child, with an additional $600 for each child under 6 years old. It also did away with the upper-income restrictions on eligibility. Furthermore, half of the credit is being disbursed in 2021 and can be received as a half-year advance payment, eliminating the need for taxpayers to wait until filing season to receive their CTC-related refunds.
In sum, IRS Publication 972 used to be used to calculate the non-refundable Child Tax Credit of up to $2,000 per eligible dependant. It is no longer in use from 2021 and onward and has been replaced by the Child Tax Credit Worksheet. As of 2021, the credit has been temporarily increased for one year to $3,000 per dependant, age 6 and under may receive an additional $600, and no upper-income limits are in place.