This story is a part of Taxes 2023, CNET’s protection of the most effective tax software program, tax suggestions and every thing else you’ll want to file your return and observe your refund.

The kid tax credit score is one of many greatest tax breaks obtainable to households within the US. Enacted in 1997, it may well present mother and father with 1000’s of {dollars} for every eligible little one.

To offset COVID-19’s financial affect, the American Rescue Plan Act significantly elevated how a lot households claiming the credit score might obtain from their 2021 return. The legislation additionally broadened the age of eligible dependents and launched advance month-to-month funds of as much as $300.

It additionally made all the credit score refundable so even households that paid little or no federal revenue tax might obtain cash.

However these enhancements have expired, and little one tax credit score advantages (and necessities) have largely returned to their pre-pandemic requirements.

For extra tax suggestions, discover out when you possibly can 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 obtainable per little one for tax yr 2022 has reverted to its pre-expansion stage of $2,000 for every little one 16 and underneath. 

For tax yr 2021, the expanded little one tax credit score was $3,600 for youngsters 5 and underneath and $3,000 for youngsters ages 6 to 17. (The age requirement was additionally briefly prolonged from underneath 17 on Dec. 31 to underneath 18. However that is gone, too.)  

Do I qualify for the kid tax credit score?

To be eligible for the tax break for the 2022 tax yr, you and your loved ones want to fulfill these necessities:

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

Go to the IRS web site for extra info.

Observe: For those who search on-line for info on the kid tax credit score, you could 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 maintain historic info reside “for individuals enjoying catchup with their taxes.” 

“Towards the tip of final yr, there was nice expectation the growth of the kid tax credit score can be continued. There was some shock it did not occur,” Steber advised 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 coming into your eligible youngsters in your Kind 1040 and attaching a accomplished Schedule 8812, Credit for Qualifying Kids and Different Dependents. 

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

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

You should still be capable to declare the extra little one tax credit score, which refunds as much as $1,500 per little one. (To see for those who qualify for the extra little one tax credit score, fill out the worksheet for IRS Kind 8812.)

For those who paid for childcare, you may additionally qualify for the kid and dependent care credit score. Relying in your circumstances, you possibly can declare 20% to 35% of your childcare bills.

The utmost you possibly can declare is $3,000 for one little one underneath 13 or a dependent with disabilities, or $6,000 for 2 or extra. 

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

Different federal revenue tax breaks obtainable to households embrace adoption credit, training credit and the earned revenue tax credit score.

Is there a state little one 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 fluctuate, so verify along with your state tax portal for particulars.

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