The child tax credit is a federal tax benefit that helps American taxpayers. When filing their 2022 tax returns in 2023, people with children under the age of 17 may claim a tax credit of up to $2,000 per dependent with a refundable $1,500.
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What exactly is the Child Tax Credit (CTC)?
CTC is available to taxpayers with dependent children under 17. To claim the child tax credit when you file your taxes, you must present to the IRS that you and your child meet the criteria.
An income below a certain threshold is phased out in increments once the limit is reached. If your modified adjusted gross income exceeds the limit, your credit amount may be reduced or deemed ineligible.
READ ALSO: New Child Tax Credit: Am I Qualified or Not?
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Who are eligible for the child tax credit?
When taxpayers file their tax returns, they can claim the child tax credit for the 2022 tax year. There are seven qualifying determinants:
1. Age
Your child must have been under 17.
2. Relationship
The child you’re claiming must be your son, daughter, stepchild, foster child, siblings, halfsiblings, stepsiblings, or a descendant of any of those people (e.g., grandchild, nephew, or niece.)
3. Dependent status
You must claim the child as a dependent on your tax return. The child cannot file a joint tax return unless they claim a refund of withheld income taxes or estimated tax payments.
4. Residency
The child you claim must have spent at least half a year with you.
5. Financial Assistance
You must have paid half the child’s support in the previous year. In other words, if your qualified child has supported themselves for more than six months, they are likely unsuitable.
6. Citizenship
Your child must be a “U.S. citizen, U.S. national, or U.S. resident alien” and have a valid SSN.
7. Income
Parents or caregivers claiming the child tax credit must also meet specific income requirements. The credit is incrementally reduced until it is eliminated, depending on how much your income exceeds the threshold.
How to Get the Credit
The child tax credit can be claimed on Form 1040 or 1040-SR. Schedule 8812 (“Credits for Qualifying Children and Other Dependents”) must also be completed and submitted with your 1040.
READ ALSO: Child Tax Credit: A Guide for New Parents
