The 2023 tax season has officially begun, and many Americans are eager to find out how much they can expect to receive in tax refunds.
The 2023 tax season has officially begun, and many Americans are eager to find out how much they can expect to receive in tax refunds. (Photo: Slide Team)
Learn How Much You Can Receive for Each Child Dependent in 2023
One of the most significant factors in determining the size of your tax refund is the number of dependents you have, and having a child is one of the most significant ways to reduce your tax liability. According to the IRS, a taxpayer can claim a $2,000 child tax credit for each qualifying child under the age of 17. Additionally, if the taxpayer’s income is below a certain threshold, a portion of the child tax credit may be refundable says Marca. This means that the taxpayer can receive a payment for the portion of the credit that exceeds their tax liability.
In 2023, the threshold for the refundable portion of the child tax credit is $2,500. This means that if you owe less than $2,500 in taxes, you could receive a payment for the difference between your tax liability and the $2,000 child tax credit.
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The 2023 tax season has officially begun, and many Americans are eager to find out how much they can expect to receive in tax refunds. (Photo: Industry Super)
Find Out How Much You Can Receive in 2023 Tax Refunds
It’s important to note that there are income limits for the child tax credit, and the credit is gradually reduced for taxpayers with higher incomes. For the 2023 tax year, the income limit for the full credit is $400,000 for married couples filing jointly and $200,000 for all other taxpayers. In addition to the child tax credit, there are other tax benefits available to taxpayers with children, including the dependent care credit, the earned income tax credit, and the child and dependent care expenses.
To maximize your tax refund and ensure that you receive all of the benefits you are eligible for, it is recommended that you consult with a tax professional or use tax preparation software. By carefully considering your eligibility for tax credits and deductions, you can help ensure that you receive the maximum refund possible.
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