This story is a part of Taxes 2023, CNET’s protection of the most effective tax software program, tax ideas and the whole lot else you could file your return and monitor your refund.

The American Rescue Plan vastly elevated the federal youngster tax credit score final 12 months, offering mother and father with a whole lot of {dollars} extra for every eligible youngster.

It additionally broadened the age of eligible dependents, launched advance month-to-month funds and allowed households that paid little or no federal earnings tax to obtain cash.

However these enhancements have expired, and the factors and advantages for the kid tax credit score have largely returned to their pre-pandemic requirements.

For extra tax ideas, discover out when you’ll be able to anticipate your refund, and get the lowdown on some stunning deductions.

How a lot is the kid tax credit score in 2023?

The utmost tax credit score accessible per youngster has reverted to its pre-expansion degree of $2,000 for every youngster underneath 17 on Dec. 31, 2022. 

For tax 12 months 2021, the expanded youngster tax credit score was $3,600 for youngsters 5 and underneath and $3,000 for youngsters ages 6 to 17. That’s now not the case. (The age requirement was additionally quickly prolonged to underneath 18 on Dec. 31. However that is gone, too.)  

Can I declare the kid tax credit score?

To be eligible for the tax break for tax 12 months 2022, you and your loved ones should meet these necessities:

• You’ve a modified adjusted gross earnings, or MAGI, of $200,000 or much less, or $400,000 or much less should you’re submitting collectively.
• The kid you are claiming the credit score for was underneath the age of 17 on Dec. 31, 2022.
• They’ve a sound Social Safety quantity.
• They’re your legally acknowledged youngster, stepchild, foster youngster, sibling, half-brother or half-sister, or a descendant of one among these classes (like a grandchild or niece or nephew).
• They’ve contributed not more than half of their very own monetary help within the related tax 12 months.
• They’ve lived with you for over half the 12 months.
• You might be claiming them as a dependent in your tax return.
• You’re a US citizen or resident alien.

Go to the IRS web site for extra info.

Word: Should you search on-line for info on the kid tax credit score, chances are you’ll come throughout particulars on the 2021 expanded tax breaks, so double-check that you simply’re viewing the newest info.

Mark Steber, chief tax info officer at Jackson-Hewitt, says many authorities websites preserve historic info stay “for individuals taking part in catchup with their taxes.” 

“Towards the top of final 12 months, there was an expectation the enlargement of the kid tax credit score can be continued. There was some shock it did not occur,” Steber instructed CNET. “So that you would possibly see some discontinuity on some websites.”

How do I declare the kid tax credit score?

You possibly can declare the kid tax credit score by getting into your eligible kids in your Type 1040 and attaching a accomplished Schedule 8812, Credit for Qualifying Youngsters and Different Dependents. 

What if the credit score is greater than what I owe in taxes?

In contrast to final 12 months, the kid tax credit score is as soon as once more nonrefundable. Which means, in case your tax legal responsibility exceeds what you get from the credit score, you forfeit the distinction.

You should still have the ability to declare the extra youngster tax credit score, which refunds as much as $1,500 per youngster. (To see should you qualify for the extra youngster tax credit score, fill out the worksheet for IRS Type 8812.)

Should you paid for childcare, you might also qualify for the kid and dependent care credit score. Relying in your circumstances, you’ll be able to declare 20% to 35% of your childcare bills.

The utmost you’ll be able to declare is $3,000 for one youngster underneath 13 or a dependent with disabilities, or $6,000 for 2 or extra. 

You could have some earned earnings to qualify for this credit score, and the care cannot have been supplied by a partner or member of the family.

Different federal earnings tax breaks accessible to households embody adoption credit, schooling credit and the earned earnings tax credit score.

Is there a state youngster tax credit score?

A dozen states — California, Colorado, Connecticut, Idaho, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oklahoma and Vermont — have some type of tax credit score that advantages households, in line with the Nationwide Convention of State Legislatures. And lots of others are contemplating implementing the tax break.

Necessities and advantages range, so test along with your state tax portal for particulars.

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