Child Related Tax Credits

Child Tax Credits and Why You Might Need a Tax Attorney to Claim Them

Tax season can be overwhelming, especially for families navigating the complexities of child-related tax credits. While these tax credits for parents offer significant financial relief, understanding the eligibility criteria, filing requirements, and potential legal pitfalls can be challenging. The three primary family tax deductions—the Child Tax Credit (CTC), Child and Dependent Care Credit (CDCC), and Adoption Tax Credit—can significantly reduce a family’s tax burden. However, claiming these benefits incorrectly or failing to provide the necessary documentation may trigger IRS child tax audits, penalties, or lost refunds.

At The Law Office of Pietro Canestrelli, A.P.C., we specialize in helping individuals and families maximize tax credits while ensuring full compliance with IRS regulations. With offices in Temecula and San Diego, we proudly serve clients throughout California and the USA. In this article, we will break down these tax credits for parents and explain why working with a tax attorney for Child Tax Credit claims can help you get the most out of your refund and deductions while avoiding costly mistakes.

Child Tax Credit (CTC)

What is the Child Tax Credit?

The Child Tax Credit (CTC) is a family tax deduction designed to assist families with qualifying children by reducing their tax liability. For tax year 2024, the Child Tax Credit lawyer can help eligible taxpayers claim up to $2,000 per child under 17. Up to $1,600 of this amount is refundable, meaning that even if you owe no tax, you could receive a portion of the credit as a refund.

Eligibility Requirements

To qualify for the CTC, you must meet the following criteria: The child must be under 17 years old at the end of the tax year. The child must be your dependent, either by birth, adoption, or legal guardianship. The child must reside with you for at least six months of the year. The child must be a U.S. citizen, U.S. national, or resident alien with a valid Social Security number. Your income must fall within the eligibility range: The full credit is available to individuals earning up to $200,000 ($400,000 for married couples filing jointly), with gradual phase-outs beyond these thresholds.

Changes Under the Inflation Reduction Act (IRA)

How a Tax Attorney Can Help with the CTC

If the IRS challenges your claim or requests additional documentation, an IRS child tax audit attorney can help you provide the necessary evidence and defend your rights. An audit can be stressful, and the IRS may require additional proof that you qualify for the credit. A tax attorney ensures that all necessary documentation is properly submitted and can negotiate on your behalf to resolve disputes efficiently.

In cases of divorce or shared custody, determining which parent can claim the credit can lead to disputes. A tax lawyer for parents with custody disputes can clarify your legal standing and ensure compliance with IRS rules. Custody agreements may not always align with tax law, leading to conflicting claims that can result in audits or lost refunds. A tax attorney can help mediate these disputes and ensure that the credit is claimed legally and appropriately.

If your income is low enough to qualify for the refundable portion of the credit, a tax attorney for Child Tax Credit claims can help ensure that you receive the maximum allowable refund. Many families miss out on the full benefits of the CTC due to misunderstandings about eligibility requirements. A tax attorney can evaluate your specific financial situation and provide strategies to optimize your tax return. Our firm, based in Temecula and San Diego, helps families across California and the USA navigate these complex tax regulations.

Child and Dependent Care Credit (CDCC)

The Child and Dependent Care Credit (CDCC) provides tax relief for working parents who pay for child care services. Unlike the Child Tax Credit, which reduces overall tax liability, the CDCC directly offsets the cost of daycare, babysitters, nannies, or other child care expenses needed while the parent(s) work or seek employment. Many families depend on child care to maintain employment, and this credit helps alleviate some of the financial burden associated with those costs.

Eligibility Requirements

To qualify for the CDCC, the child must be under 13 years old or a dependent with disabilities who cannot care for themselves. The parent(s) must be working or actively seeking employment. Additionally, the caregiver cannot be a spouse or dependent claimed on the taxpayer’s return. The credit applies to qualified care expenses, such as daycare centers, babysitters, or after-school programs. The credit covers up to 35% of qualifying expenses, with a maximum of $3,000 per child (or $6,000 for two or more children), depending on income level.

Why You Might Need a Tax Attorney for the CDCC

The IRS often requires detailed proof of child care tax deduction expenses, and errors in documentation can lead to rejected claims or audits. A tax attorney for parents ensures that all records, receipts, and necessary documentation are properly maintained and submitted to avoid delays or denials. Many taxpayers fail to keep detailed records of child care expenses, which can become a problem when filing taxes. A tax attorney can advise on best practices for record-keeping to ensure compliance with IRS regulations.

If your claim is flagged for an audit, a dependent care tax lawyer can negotiate with the IRS on your behalf. Audits can be daunting, and without professional representation, taxpayers may struggle to defend their claims. A tax attorney can represent you in dealings with the IRS and ensure that your rights are protected throughout the audit process.

Some employers offer Dependent Care FSAs, which impact how much credit you can claim. A tax lawyer for parents can help coordinate these benefits for maximum savings. Many taxpayers do not realize that using a Dependent Care FSA can reduce the amount of credit they are eligible for. A tax attorney can analyze your financial situation to determine the best strategy for maximizing tax savings while ensuring compliance with all applicable tax laws. With offices in Temecula and San Diego, we serve clients throughout California and the USA, helping them secure the maximum tax benefits.

Contact Us Today

Child tax credits can provide substantial financial relief for families, but the complexity of tax laws and IRS scrutiny can make claiming them challenging. Whether you are dealing with a custody dispute, adoption process, or IRS audit, having an experienced tax attorney for Child Tax Credit claims ensures that you maximize your benefits while remaining compliant with tax laws.

At The Law Office of Pietro Canestrelli, A.P.C., we have offices in Temecula and San Diego and proudly serve clients throughout California and the USA. If you need assistance claiming the Child Tax Credit, Child and Dependent Care Credit, or Adoption Tax Credit, contact us today. Let us help you protect your rights, maximize your refund, and ensure compliance with IRS regulations.