Up To $2,000 Child Tax Credit: Requirements, How To Claim Them

Like in 2022, up to $2,000 per eligible child can be claimed in Child Tax Credit (CTC) this year. In this article, read and find out the requirements on how to claim CTC!

Family with Children [Photo: CNBC]

According to Heilman, like in 2022, the Child Tax Credit of up to $2,000 per eligible child can be claimed by taxpayers. This 2023, the tax credits are partially refundable and there would be an income threshold. With this income threshold, up to $1,400 can be claimed as a portion known as the “Additional Child Tax Credit.” Taxpayers who have less tax liabilities than the refundable amount can have it included in their tax refunds. On the other hand, the non-refundable amount can reduce their tax liabilities.

READ ALSO: Maximize Your Benefits: How To Ensure Receiving The Full Child Tax Credit Payment

Requirements to Claim CTC

An article on NerdWallet says that the 2023 CTC can be claimed by parents who have children under the age of 17 as of December 31, 2022. To be eligible, the child must be claimed as a dependent on the taxpayer’s return and live with the taxpayer for more than half a year. The child cannot also provide for themselves more than half of their financial support during the year. In addition, the child must have a valid Social Security Number.

Parents of the eligible child must earn an adjusted gross income (AGI) of no more than $200,000 for individual filers and $400,000 for couples who filed jointly to be able to claim the full tax credit. For every $1,000 that exceeds the income threshold, the tax credits will be reduced by $50. For those with low incomes, they must earn an income of at least $2,500 to be able to claim the refundable portion of the tax credits.

READ ALSO: Get The Credit You Deserve: A Guide To Navigating The Child Tax Credit During Tax Season 2023