Child tax credit is important if you have dependent children in your family. The tax credit is levied in the United States when the income of a family is less than $110,000 a year. However, with divorced parents, the situation may be complex, especially in the state of Illinois. Although an experienced family lawyer can offer the best advice, it is important that you learn how the tax credits may apply to you after divorce. Here are some important details:
No Child Tax Credit in Illinois
Illinois is a state that offers earned income tax credit additional from the federal tax credit that you can receive. You must have earned that taxable income while in the state. You can apply for this tax credit with your federal tax return or even apply when you do not owe any federal taxes as well. The Department of Human Services in Illinois can provide detailed information about the applied tax credit that you can get in the state. However, Illinois as a state does not offer child tax credit.
However, you should also learn how you can get the benefit of a child tax credit if divorced and not living with your children as a single-family unit. Here are the latest details that describe how a divorce may affect your ability to receive federal child tax credit:
The first factor that decides your child tax credit is whether you are a custodial parent or not. Usually, the custodial parent can directly apply for the available tax credits. However, this does not mean that the non-custodial partner will not get any credit. A family attorney may elaborate the exact situation, but a parent paying the child support and other expenses of the dependent children can often get the child tax credit in most circumstances.
You can get the child tax credit if you divorced your partner with a written agreement and have been living separately for the last six months. The child may be in the custody of either a single parent or in shared custody with both parents distributing parenting time between them to qualify for the custodial credits.
The non-custodial parent also needs documented proof where the other parent allows them to take their children as dependent ones, by ensuring that they fulfill their monetary obligations towards dependent children. This will ensure that they can apply to get the child tax credit on their return.
The child tax credit for each child can be as high as $1000. There are also several income benefits that both parents can apply for regardless of the divorce, such as health insurance coverage of children from their employers. The incurred medical expenses for children can also be included on the tax return as itemized deduction items.
However, there are a few tax benefits that only a custodial parent can receive. The ideal way to find out related information is to seek advice from a reputed family lawyer in Illinois and understand how the divorce can affect your ability to apply for federal tax credits from the state of Illinois. Contact Casement P.C., to schedule a free consultation today to ensure that you deal with your child tax credit the right way in Illinois.