The tax season is here and it brings lots of confusion together in what kinds of forms and applications one should fill out. To make it a little easier, we have come up with a solution. As a parent or guardian, one may be eligible for various tax credits and deductions based on one’s income.
For 2023, the maximum Child Tax Credits per qualifying child is $2,000 for children under 5 years old and $3,000 for children aged 6 to 17. It is important to note that the advance payment option, available in previous years, is not available for this tax season.
Who Is Eligible For The Child Tax Credit?
To be eligible for the Child Tax Credit in 2023, you must be a parent or guardian filing taxes. Additionally one child or dependent must meet the following requirements:
Have a valid Social Security number for employment purposes in the U.S. Be under 17 years old. Be related to one as a son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or descendant. Receive less than half of their financial support during the year. Live with you for over half of the year. Be claimed as a dependent on your tax return.
Not file a joint return with their spouse, except to claim a refund of withheld income tax or estimated tax paid. To receive the Child Tax Credit as a parent or guardian, you must meet the income requirements of having an adjusted gross income of less than $200,000 when filing individually or less than $400,000 if filing a joint return with a spouse. To claim the credit, you must list your qualifying children and dependents on a 1040 form and also complete Schedule 8812.
