diff --git a/direct-file/backend/src/main/resources/tax/ctcOdc.xml b/direct-file/backend/src/main/resources/tax/ctcOdc.xml index 01dba4d..70633bd 100644 --- a/direct-file/backend/src/main/resources/tax/ctcOdc.xml +++ b/direct-file/backend/src/main/resources/tax/ctcOdc.xml @@ -191,7 +191,9 @@ Maximum child tax credit amount - The maximum child tax credit per child + The maximum child tax credit per child. Established in 26 U.S. Code § 24. + Under current legislation, this reduces to $1,000 for TY 2026. Can be found in instructions + for Schedule 8812. 2024 @@ -248,8 +250,9 @@ Total potential ODC The maximum amount of the Credit for Other Dependents that could be claimed. - Reported on line 7 of - Schedule 8812. + Established in 26 U.S. Code § 24. Under current legislation, ODC expires as a credit in TY 2026. + Reported on line 7 of Schedule 8812. + 2024 @@ -313,9 +316,10 @@ Dependent credit phaseout threshold - The MAGI threshold at which the dependent credits begin to phaseout. Reported on - line 9 of Schedule - 8812. + The MAGI threshold at which the dependent credits begin to phaseout. + Set in 26 U.S. Code § 24. Under current legislation, amounts shown here persist through TY2025 + and then revert to $110,000 MFJ / $75,000 not married / $55,000 MFS for TY 2026. + Reported on line 9 of Schedule 8812. 2024 @@ -806,8 +810,9 @@ Maximum additional child tax credit amount - The maximum additional tax credit per child - Rev Proc .05 Child Tax Credit §24(d)(1)(A) + The maximum additional tax credit per child. Established in 26 U.S. Code § 24. + This is adjusted for inflation annually, with special rules applied through TY 2025. + See inflation adjustment Rev Proc section .05 Child Tax Credit §24(d)(1)(A) for annual amounts. 2024 @@ -857,8 +862,8 @@ Additional CTC refundability threshold The amount of earned income that must be exceeded in order to receive the - refundable additional child - tax credit. + refundable additional child tax credit. Set in 26 U.S. Code § 24. Under current legislation, + reverts to $3,000 in TY 2026. 2024 diff --git a/direct-file/backend/src/main/resources/tax/familyAndHousehold.xml b/direct-file/backend/src/main/resources/tax/familyAndHousehold.xml index 89b202b..dbb283a 100644 --- a/direct-file/backend/src/main/resources/tax/familyAndHousehold.xml +++ b/direct-file/backend/src/main/resources/tax/familyAndHousehold.xml @@ -3856,7 +3856,11 @@ Eligible for the Child Tax Credit - The dependent is eligible for the Child Tax Credit (CTC). + The dependent is eligible for the Child Tax Credit (CTC). Eligibility rules are + established in 26 U.S. Code § 24. Under current legislation, the requirement to have a SSN + and include it on the return expires after TY 2025. + See instructions for Schedule 8812 for current tax year guidance. + 2024