The child tax credit will provide a credit of up to $2,000 per child under age 17 for families that meet income eligibility requirements. This can reduce a family’s tax liability dollar-for-dollar.
– For 2023, the income thresholds to receive the full credit are:
– – Married filing jointly: $150,000 or less
– – Head of Household: $112,500 or less
– – Single: $75,000 or less
– The credit phases out by $50 for every $1,000 over those income thresholds.
– To qualify for the full credit, children must have a Social Security number and live with the taxpayer claiming the credit for more than half the year.
– Up to $1,500 of the credit per child is refundable.
– The expanded child tax credit benefits from 2021-2022 that provided advanced monthly payments to families during the year are currently set to expire after 2022. So for 2023, the credit will only be claimed when filing taxes in 2024.
– Taxpayers will need to claim qualifying dependents and fill out Schedule 8812 when filing their 2023 taxes in early 2024 to receive the child tax credit.
So for 2023, the child tax credit will be claimed when filing taxes the following year, unless Congress acts to extend the advanced monthly payment program from previous years. The maximum credit will remain at $2,000 per child. Let me know if you need any other details!
