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Since tax season is here, getting lost in all the forms and applications is easy. But with the right knowledge, filing can be less complicated.
Here’s what you should understand about the Child Tax Credit for tax season this year and if you qualify for it.
READ ALSO: Child Tax Credit: A Guide for New Parents
(Photo: Forbes)
Who qualifies for the Child Tax Credit?
There are many requirements to qualify for the Child Tax Credit. You must be a guardian or a parent first before filing taxes in 2023.
According to the IRS, for your child or dependent to qualify, they must hold a Social Security number valid for employment in the U.S. Your child must be under 17 years old. Also, the other requirements are:
- They are your child, stepchild, eligible foster child, siblings, half-siblings, step-siblings, or descendant.
- During the year, they only provide part of their financial aid.
- They have to be a resident of your household for half a year.
- On your tax return, they are declared as your dependent.
- As dependents, they do not file a joint return with their spouse for the tax year or file it only to claim a refund or withheld income tax.
- Must be a citizen, national, or resident alien in the U.S.
If your adjusted gross income is less than $200,000 when filing individually or less than $400,000 if you’re filing a joint return with a spouse, as a parent or guardian, you are eligible for the Child Tax Credit.
By listing your children and other dependents on the 1040 form, you can receive the Child Tax Credit, which is the U.S. individual income tax return. For qualifying children and other dependents, you must complete schedule 8812.
The returns from the Child Tax Credit may not be a lot, but it is a good way of saving up and make use of the money for other expenditures.
READ ALSO: 2023 Tax Returns and Child Tax Credit FAQs You Ought to Know
