This story is a part of Taxes 2023, CNET’s protection of the very best tax software program, tax suggestions and all the pieces else it’s good to file your return and monitor your refund.

The enlargement of the kid tax credit score final yr by the American Rescue Plan was one of many largest financial measures in current historical past, lifting greater than 2 million youngsters out of poverty.

Not solely did the enlargement give mother and father extra money for every eligible youngster, it broadened the age of eligible dependents, launched advance month-to-month funds, made the credit score refundable, and allowed households that paid little or no federal earnings tax to obtain it.

These enhancements have expired, and the factors and advantages for the kid tax credit score have largely returned to their pre-pandemic requirements. Nonetheless, the kid tax credit score nonetheless stays top-of-the-line methods for households to get more money of their tax refunds.

Find out how the kid tax credit score works in 2023 and the way a lot cash you will get.

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 beneath 17 on Dec. 31, 2022. 

For tax yr 2021, the expanded youngster tax credit score was $3,600 for kids 5 and beneath and $3,000 for kids ages 6 to 17. That’s now not the case. (The age requirement was additionally quickly prolonged to beneath 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’ve got a modified adjusted gross earnings, or MAGI, of $200,000 or much less, or $400,000 or much less for those who’re submitting collectively.
• The kid you are claiming the credit score for was beneath the age of 17 on Dec. 31, 2022.
• They’ve a legitimate Social Safety quantity.
• They’re your legally acknowledged youngster, stepchild, foster youngster, sibling, half-brother or half-sister, or a descendant of one in every of 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 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 larger 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 assist you to declare $1,500 for every eligible youngster. 

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

Observe: When you search on-line for data on the kid tax credit score, it’s possible you’ll 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 preserve historic data stay “for folks taking part in catch-up with their taxes.” 

“Towards the top 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 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 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?

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 have the ability to declare the extra youngster tax credit score, which refunds as much as $1,500 per youngster. (To see for those who qualify for the extra youngster tax credit score, fill out the worksheet for IRS Kind 8812.)

When 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 beneath 13 or a dependent with disabilities, or $6,000 for 2 or extra. 

It’s essential to 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 embrace adoption credit, training 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 fluctuate, so examine 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 stunning deductions.

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