2023 Tax Guide For Parents: Know More About Child Tax Credit, EITC

The 2023 tax season provides parents with a bunch of new tax credits and deductions. In this article, read and know more about the Child Tax Credit and Earned Income Tax Credit (EITC) that could help reduce your taxes!

Income Tax Return [Photo: MARCA]

According to Buchwald, people usually think that having a dependent child automatically reduces their tax bills or increases their tax refunds. However, in most cases, the tax credits and deductions are based on income levels. In general, taxpayers who earn a low income are qualified for more tax credits and deductions.

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Earned Income Tax Credit

An article in The Economic Progress Institute says that a taxpayer could be eligible for an Earned Income Tax Credit when they have a child. Up to $3,733 could be claimed by single filers with one child and an adjusted gross income of $43,492 and joint filers with $49,622. Furthermore, even if a taxpayer does not have any tax liabilities in 2022, they could still receive up to $3,733.

Child Tax Credit

According to Barnes, a taxpayer could also be eligible for a Child Tax Credit when they have a child by 2022. Single filers must earn an adjusted gross income of no more than $200,000, while joint filers must earn no more than $400,000. Unfortunately, the maximum tax credits that can be received were reduced to $2,000 from $3,600 for children ages 5 and under. For children ages 6 to 17, it was also reduced to $3,000. Furthermore, a part of the tax credits could not be received in advance unlike in 2022.

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