How much is the child tax credit for 2023? Here's what you need to know about qualifying.

2024-12-25 22:44:29 source:lotradecoin community forum discussions category:My

Tax season is here. With all the forms and applications you need to fill out, it's easy to get confused. But USA TODAY has got you covered with a series of stories and tips that will hopefully make filing a little less complicated.

If you're a parent or guardian, filing can be more complicated than when it was just a return for yourself or a joint filing with a spouse. You may qualify for a slew of new tax credits and deductions depending on your income level. 

Here is what you should know about the child tax credit for this year's tax season and whether you qualify.

Tax credit per child for 2023

The maximum tax credit per qualifying child is $2,000 for children under 17. For the refundable portion of the credit (or the additional child tax credit), you may receive up to $1,600 per qualifying child.

Who qualifies for the child tax credit?

There are several requirements to qualify. The first is you must be a parent or guardian who is filing taxes in 2024. 

For your child or dependent to qualify, they must have a Social Security number that is valid for employment in the U.S., according to the IRS. They must be under 17 years old at the end of the year.The other requirements are: 

  • They are your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, step-sibling or descendant (such as a niece, nephew or grandchild).
  • They provide no more than half of their own financial support during the tax year.
  • They have lived with you for more than half the tax year.
  • They are properly claimed as your dependent on your tax return.
  • They do not file a joint return with their spouse for the tax year, or they file it only to claim a refund of withheld income tax or estimated tax paid.
  • They are a U.S. citizen, U.S. national or U.S. resident. 

The value of the child tax credit and additional tax credit decreases if the parent or guardian's gross income is more than $200,000 when filing individually, or more than $400,000 if filing a joint return with a spouse.

The additional tax credit cannot be given to those who file a Form 2555 or Form 2555-EZ, excluding foreign earned income.

How to claim the child tax credit? 

You can receive the Child Tax Credit by listing your children and other dependents on a 1040 form, which is the U.S. individual income tax return. You must alsocomplete a schedule 8812, which is or credits for qualifying children and other dependents. 

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