(Photo: Forbes)
Federal aid for families through the Child Tax Credit will be available in 2023.
What is the Child Tax Credit?
The Child Tax Credit uses a parent’s modified adjusted gross income to provide a partially refundable tax credit for the 2023 tax year. A partially refundable credit means receiving a portion of it even if you do not owe any income taxes for the tax year. A parent who qualifies for the Child Tax Credit and files taxes can claim it.
(Photo: Business Insider)
READ ALSO: New Child Tax Credit: Am I Qualified or Not?
Can all parents claim the Child Tax Credit?
No. To claim the Child Tax Credit, parents must file taxes and meet residency and income requirements.
Parents who spend more than half of the year in the United States and have children who are 16 or younger on the last day of the year meet the residency requirement. U.S. military and federal employees stationed outside the United States are also eligible.
How much is the Child Tax Credit, and what changed in 2023?
Some of the temporary changes made to the Child Tax Credit in 2021 will only apply in 2023 if legislation is passed. Among the changes for 2023 are the following:
- The credit has been reduced to $2,000.
- There is no portion of the credit available in advance.
Will the Child Tax Credit affect public benefits?
The Child Tax Credit does not affect any government benefits. Furthermore, the Child Tax Credit is not offset by overdue taxes or other federal or state debts owed by taxpayers or their spouses. On the other hand, child support payments may continue to offset these credits.
Families eligible to claim Child Tax Credit can start filing as soon as possible.
READ ALSO: Child Tax Credit: A Guide for New Parents
