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

The expanded baby tax credit score was one of the vital profitable anti-poverty measures in current historical past, lifting greater than 2 million kids out of poverty, based on information from the US Census. Together with offering more cash per baby, the expanded credit score launched advance month-to-month funds and make the cash completely refundable.

Nonetheless, the US authorities was unable to agree on extending the expanded baby tax credit score previous 2021. For the 2022 tax yr — which is the tax return that is due on April 18, 2023 — the kid tax credit score drops again right down to its pre-pandemic stage.

Find out how the kid tax credit score works in 2023 and the way a lot cash you may get. For extra tax suggestions, study which divorced mum or dad will get to assert the kid tax credit score and all of the tax breaks you may get from your private home.

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

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

For tax yr 2021, the expanded baby tax credit score was $3,600 for kids 5 and below and $3,000 for kids ages 6 to 17. That’s now not the case. (The age requirement was additionally briefly prolonged to below 18 on Dec. 31. However that is gone, too.)  

Who’s eligible for the kid tax credit score?

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

• You could have a modified adjusted gross earnings, or MAGI, of $200,000 or much less, or $400,000 or much less in the event you’re submitting collectively.
• The kid you are claiming the credit score for was below the age of 17 on Dec. 31, 2022.
• They’ve a sound Social Safety quantity.
• They’re your legally acknowledged baby, stepchild, foster baby, sibling, half-brother or half-sister, or a descendant of certainly one of these classes (like a grandchild or niece or nephew).
• They’ve contributed not more than half of their very own monetary assist within the related tax yr.
• They’ve lived with you for over half the yr.
• 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 data.

In case your MAGI is greater than the earnings limits, the quantity of kid tax credit score you obtain will lower $50 for each $1,000 above the restrict. For instance, a MAGI of $210,000 as a person would let you declare $1,500 for every eligible baby. 

The kid tax credit score is phased out fully at $240,000 for people and $480,000 for married {couples} submitting collectively.

Word: In the event you search on-line for data on the kid tax credit score, you might come throughout particulars on the 2021 expanded tax breaks, so double-check that you just’re viewing the newest data.

Mark Steber, chief tax data officer at Jackson-Hewitt, says many authorities websites hold historic data stay “for folks enjoying catch-up with their taxes.” 

“Towards the tip of final yr, there was an expectation the enlargement of the kid tax credit score can be continued. There was some shock it did not occur,” Steber informed CNET. “So that you may see some discontinuity on some websites.”

How do I declare the kid tax credit score?

You may declare the kid tax credit score by getting into your eligible kids in your Kind 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?

Not like 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 of declare the extra baby tax credit score, which refunds as much as $1,500 per baby. (To see in the event you qualify for the extra baby tax credit score, fill out the worksheet for IRS Kind 8812.)

In the event you paid for childcare, you may additionally 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 baby below 13 or a dependent with disabilities, or $6,000 for 2 or extra. 

You need to have some earned earnings to qualify for this credit score, and the care cannot have been offered 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 baby 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, based on the Nationwide Convention of State Legislatures. And plenty of others are contemplating implementing the tax break.

Necessities and advantages differ, so verify together with your state tax portal for particulars.

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

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