The Child Tax Credit recipients were given $300 monthly payments per child in 2021. As for 2023, CTC remains at $2,000 per eligible child for the tax year without any upfront monthly payments.
The Child Tax Credit recipients were given $300 monthly payments per child in 2021. As for 2023, CTC remains at $2,000 per eligible child for the tax year without any upfront monthly payments. (Photo: Marca)
What is Child Tax Credit?
Child Tax Credit will give monthly relief to taxpayers with dependent children 17 and below. According to a post by Marca, you must show the IRS that you and your child meet the needed requirements to claim the credit upon filing your taxes. This lowers as your reach a maximum cap so you need to show that your income is below that level. If it is higher than the cap, the credit will be reduced or there’s a chance to lose eligibility completely.
What Will Happen to the 2023 Child Tax Credit?
In 2021, there were lots of changes done to the country’s tax legislation as part of the coronavirus relief package. Americans earned monthly payments of up to $300 per child from the CTC relief. This was then reduced to $2,000 per eligible child for the tax year 2022. This means that the 300 dollars advance monthly installments were no longer available.
The Child Tax Credit will remain at $2,000 per eligible child for the tax year 2023. Still, there would be no upfront monthly payments. Many families now qualify for and receive funds from the Child Tax Credit due to a temporary change in the law.
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The Child Tax Credit recipients were given $300 monthly payments per child in 2021. As for 2023, CTC remains at $2,000 per eligible child for the tax year without any upfront monthly payments. (Photo: Marca)
Who is Eligible to Receive the Child Tax Credit?
Not all parents are eligible to receive the CTC as there are qualifications they need to accomplish. Parents must file taxes and meet certain residency and income standards. Parents with children who are 16 years of age or younger must maintain their primary residence in the United States for more than half of the year. CTC has income that must be met wherein eligible parents must earn the following modified adjusted gross income (MAGI) as of 2023. For single filers, the income restriction is $200,000 or less and for married couples filing jointly the income restriction is $400,000.
Will There be Payments in 2023?
To answer this, the IRS already paid a portion of the Child Tax Credit in advance for a portion of 2021. In 2022 and 2023, the advance payments were not scheduled to be made available. There are still ongoing political initiatives to extend the monthly Child Tax Credit payments, a change does not appear likely at this time.
READ ALSO: $1,000 Child Tax Credit For Nebraskan Parents- See Eligibility Here
