Up to $2,000 Child Tax Credit is Now Available for Taxpayers, Are You Eligible?

American families are about to receive a $2,000 Child Tax Credit once they file their 2022 Income Tax Returns but there will be some changes this time.

Up to $2,000 Child Tax Credit is now available to American families. (Photo: CBS News)

$2,000 Child Tax Credit

The Child Tax Credit (CTC) is one of the sources of additional money for American families across the country. The amount that eligible families received changed every year. In fact, the federal government has increased the amount of CTC during the pandemic to help struggling families combat the effect of COVID-19.

Judy Strauss, an enrolled agent who runs Strauss Tax Services, said, “A lot of the things like the child credits and the child care credits are back down to where they were before the pandemic.”

Meanwhile, Dan Rahill, managing director at Wintrust Wealth Management, said, “The child care tax credit, that’s No. 1 on the list during the pandemic in 2021. That increased to $3,600 for children under 6 and $3,000 for other children under 17. Now that reverts back to pre-pandemic rules, and it’s only going to be $2,000 for per child this year.”

In a published article in NBC Chicago, financial and tax experts said that families filing for these claims could see a smaller amount compared to the previous years.

READ ALSO: Food Banks Are Now Preparing As SNAP Benefits Are About To Expire

Eligibility for Child Tax Credit

The eligibility for the Child Tax Credit depends on different factors including a filer’s claimed dependents and annual income. Those who have an annual income of less than $200,000 individually or $400,000 if filing jointly are eligible for full credit.

How to know if your child qualifies for the credit? This is what the Internal Revenue Service said:

• Be under age 17 at the end of the year
• Be the filer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
• Provide no more than half of their own financial support during the year
• Have lived with the filer for more than half the year
• Be properly claimed as your dependent on the filer’s tax return
• Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
• Have been a U.S. citizen, U.S. national or U.S. resident alien

Furthermore, those who want to claim their Child Tax Credit should complete Form 1040, U.S. Individual Income Tax Return, and should attach a completed Schedule 8812.