Millions of families could be missing out on thousands of dollars in child tax credits due to filing mistakes, warn tax experts. The child tax credit is worth up to $2,000 per child under the age of 17, and the refundable portion, known as the additional child tax credit, is up to $1,700. However, a misstep in filing can delay the processing of a return and the receipt of a refund.
According to tax experts, one common child tax credit mistake is not knowing eligibility. The IRS requires a “qualifying child,” which includes a child who is 17 years old or under, and dependent on the taxpayer. Other factors include being a U.S. citizen, national, or resident alien, and having a valid Social Security number.
Another mistake is missing a Social Security number, which can take one to six weeks to receive after application. Filing a tax return before receiving the Social Security number is a mistake, as it can result in the denial of the child tax credit.
To avoid these common child tax credit mistakes, tax experts recommend filing via tax software or using a preparer instead of filing a paper return on your own. Tax software includes credit eligibility checks, which can minimize errors. If the family does not have the child’s Social Security number before the tax deadline, they should request an extension, which gives them six more months to file their return. However, they must still pay taxes owed by the original deadline.