Child Tax Credit
The Child Tax Credit (CTC) is designed to give an income boost to the parents or guardians of children and other dependents. In 2023, the maximum child tax credit will be $2,000 per child. Please note that, it will only be available in the form of a tax refund.
Some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
Qualifications
Eligiability for the Child Tax Credit is dependant on several factors. To qualify the child must meet 6 IRS Test.
Age: Child was under age 17 at the end of the tax year.
Relationship: Must be daughter, son, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-sister or half-brother. Can also be a direct descendent such as grandchild, niece, or nephew.
Support: Did not provide more than half their own support.
Dependent: Child must be claimed as dependent.
Citizenship: Must be a US citizen, US national or US resident alien.
Resident: Must have lived with you for more than half the year.
*Your qualifying child must have a Social Security Number (SSN) issues by the Social Security Administration (SSA) before the due date of the tax return (including extensions) to be claimed as a qualifying child for the Child Tax Credit or Additional Child Tax Credit.
Other Dependents Credit
New beginning with tax year 2018 is the Credit for Other Dependents. This non-refundable tax credit is up to $500 per qualifying person. Dependents who cannot be claimed for the Child Tax Credit may still qualify for this credit.
The Child Tax Credit (CTC) is designed to give an income boost to the parents or guardians of children and other dependents. In 2023, the maximum child tax credit will be $2,000 per child. Please note that, it will only be available in the form of a tax refund.
Some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC) and Child and Dependent Care Credit.
- Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year.
- For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.
- The Child and Dependent Care Credit returns to a maximum of $2,100 in 2022 instead of $8,000 in 2021.
Qualifications
Eligiability for the Child Tax Credit is dependant on several factors. To qualify the child must meet 6 IRS Test.
Age: Child was under age 17 at the end of the tax year.
Relationship: Must be daughter, son, stepchild, foster child, adopted child, brother, sister, stepbrother, stepsister, half-sister or half-brother. Can also be a direct descendent such as grandchild, niece, or nephew.
Support: Did not provide more than half their own support.
Dependent: Child must be claimed as dependent.
Citizenship: Must be a US citizen, US national or US resident alien.
Resident: Must have lived with you for more than half the year.
*Your qualifying child must have a Social Security Number (SSN) issues by the Social Security Administration (SSA) before the due date of the tax return (including extensions) to be claimed as a qualifying child for the Child Tax Credit or Additional Child Tax Credit.
Other Dependents Credit
New beginning with tax year 2018 is the Credit for Other Dependents. This non-refundable tax credit is up to $500 per qualifying person. Dependents who cannot be claimed for the Child Tax Credit may still qualify for this credit.