2023 Child Tax Credit: What Is It and How to Qualify

To put it simply, the Child Tax Credit is a tax credit for American taxpayers with children under 17. In this article, read and find out what a child tax credit is and how to qualify for it!

Child Tax Credit [Photo: CNET]

According to NerdWallet, those who are qualified to claim the tax credit may receive up to $2,000 per eligible dependent upon filing their 2022 tax returns. In addition, $1,500 of the tax credits may be refundable. This means if for example, a taxpayer owes $1,000 in taxes, they would receive a $500 refund.

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Who is qualified for this tax credit?

According to NerdWallet, to be eligible for this tax credit, a taxpayer’s child must be under the age of 17 by the end of 2022. Most importantly, the child claimed may be the taxpayer’s biological child, stepchild, foster child, sibling, half-sibling, stepsibling, or a descendant of any of the mentioned people such as a grandchild, niece, or nephew. The taxpayer must also be living with the child for at least half a year and must have provided at least half of the child’s needs in the last year.

Furthermore, the child must also be a U.S. citizen, national, or resident alien and must possess a valid Social Security number. Lastly, the taxpayer must properly claim the child as a dependent. The child cannot file jointly unless a refund of withheld income taxes or estimated taxes paid is needed to be filed.

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