Connect with us

Finance

Child Tax Credit 2023 | What You Need to Know

Published

on

Child Tax Credit 2023 | What You Need to Know

Child Tax Credit 2023 | What You Need to Know.The Child Tax Credit for 2023 has seen an increase of $1000 for children under 16 and $1600 for children above 16, as compared to the previous year, 2022.

Child Tax Credit 2023 | What You Need to Know

Parents can now receive an annual Child Tax Credit of $3600 for children below 6 years old and $3000 for children aged 6 and above. To claim this credit, individuals must file Form 1040 with Schedule 8812 (“Credits for Qualifying Children and Other Dependents”). Read on to learn more about how to claim it.

See also  Tax Refund Incheon Airport | How Do I Claim My Shopping Amount Immediately?

Child Tax Credit 2023

The Child Tax Credit is a government initiative introduced under the American Rescue Plan to provide financial assistance to working families. Married couples can claim the Child Tax Credit for each child under 17 years of age. To do so, families must file a tax return by submitting Form 1040 with Schedule 8812. The deadline for electronically or on-paper filing for the 2022 tax year was April 18, 2023, but an extension deadline for filing for a refund is available until October 16, 2023.

Child Tax Credit 2023 Amount

In comparison to 2022, the Child Tax Credit for children below 6 and between 7 to 17 years has been increased by $1000 and $1600, respectively. Now, each child below 6 years will receive $300 monthly through direct deposit, while children aged 6 to 17 will receive $250 monthly as a Child Tax Credit.

See also  Disability Benefits Pay Chart 2023/2024 | Everything You Need To Know

To claim Child Tax Credit amounts of $3600 or $3000 for your child(ren), taxpayer families must indicate their eligibility at the time of filing their tax return by completing Form 1040 with Schedule 8812.

Advertisement

Eligibility Criteria for Child Tax Credit

To claim the Child Tax Credit along with the 2022 Tax return, individuals must meet specific eligibility criteria, including:

  1. Child’s Age: The child must be above 17 years of age as of December 2022.
  2. Relationship: The claimer must have a qualifying relationship with the child, such as being a son, daughter, stepchild, foster child, sibling, half-sibling, step-sibling, etc.
  3. Residency: The child must be a permanent resident of the United States, holding a valid Social Security Number.
  4. Residence Duration: Claimants must prove that the child lived with them for at least 6 months or more.
  5. Income Threshold: To receive the full Child Tax Credit, a couple’s Adjusted Gross Income must not exceed $150,000, while for Head of Household filers, the threshold is $112,500.

How to Claim Child Tax Credit 2023?

If you have a child aged 17 or below as of December 2022, you can claim the Child Tax Credit by filing your tax return electronically through the IRS Free File system. Follow these steps to file Form 1040 with Schedule 8812:

  1. Visit the official website of the Internal Revenue Service (IRS) at https://irs.gov/.
  2. On the IRS web portal, under the “Tools & Applications” section, look for the option labeled ‘IRS Free File’ and click on it to be redirected to another page.
  3. On this page, you will find two options: “Use Free Guided Tax Preparation” and “Use Free File Fillable Forms.” Choose the first option if your AGI is $73,000 or below; for AGIs above this amount, select the second software.
  4. Enter your Social Security Number, Filing Status, Refund Amount, Child Tax Credit Details, and other required information to complete the application form.

How to Check Child Tax Credit 2023 Status?

Individuals who have already claimed the Child Tax Credit when filing their tax return electronically can check the status of their tax return and Child Tax Credit using the “Where’s My Refund?” tool or the IRS2Go mobile application.

See also  Cash App Payment Pending | Could It Be Down? This Is All You Need To Know

It’s important to note that after filing for tax return with Child Tax Credit, it typically takes four weeks for approval by the Internal Revenue Service, after which the credit is sent to taxpayers via direct deposit or check. Stay updated on your refund status using these tools.

Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending