Child Tax Credit and EITC: A 2023 Tax Program That Could Benefit New American Parents

Making sure your child has a Social Security number is the first thing you should do because you cannot list them as a dependent on your tax return if they don’t.

The deadline for filing a tax extension is October 16, so if you still don’t have a Social Security number by then, you can always file a return without listing your child as a dependent and file an amended return once you do. Additionally, you are regarded as the head of the household for tax purposes if you are a single parent.

Base on the published by USA Today on January 31, 2023, people believe that having a child will automatically reduce their tax obligation or result in a larger refund. After having a child or adopting one, lower-income taxpayers are typically qualified for more generous tax credits and deductions.

You may qualify for the Child Tax Credit if you became a parent in 2022 and have an adjusted gross income of less than $200,000, or less than $400,000 if you’re filing a joint return with a spouse.

The maximum tax credit per qualifying child that you could get for a child born last year was reduced from $3,600 for children under five or $3,000 for children aged six to seventeen to $2,000 instead.

You may be eligible for a tax credit for up to $3,000 in child care expenses if your adjusted gross income was $43,000 or less last year.

If you are filing a return alone and your adjusted gross income was $43,492 or $49,622 if you are filing jointly with your spouse, you may be eligible for a refundable tax credit of up to $3,733.