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Child Tax Credit 2023: Everything You Need to Know About Changes This Year

Child Tax Credit 2023 [Photo: Forbes]
Child Tax Credit 2023 [Photo: Forbes]

Because of the American Rescue Plan Act, the Child Tax Credit has greatly improved since last year. In this article, read and find about the changes in Child Tax Credit 2023.

Family with Child [Photo: Parents]

Family with Child [Photo: Parents]

The American Rescue Plan Act (ARPA) has greatly improved the federal Child Tax Credit 2023 compared to last year. The Child Tax Credit 2023 has provided parents with hundred more dollars for each eligible child. It also extended the age of eligible dependents, established advance monthly payments, and authorized families who pay little to no federal income tax to receive money.

According to Avery, the maximum amount for the Child Tax Credit 2023 has returned to the amount before the COVID-19 pandemic. Like on December 31, 2022, the amount is $2,000 for each eligible child below 17. This amount has been reduced from the $3,600 for children 5 and below and $3,000 for children ages 6 to 17 in 2021.

READ ALSO: Looking Back: How The Child Tax Credit Expansion Lifted Millions Of Children Out Of Poverty

Who will qualify for the Child Tax Credit 2023?

An article on Economic Times stated that to qualify for the Child Tax Credit 2023, an applicant must have a modified adjusted gross income (MAGI) of no more than $200,000 for individual filers and less than $400,000 for joint filers.

In addition, a child dependent claimed must have been below 17 by December 31, 2022. They must be legally recognized as the applicant’s child, stepchild, foster child, sibling, half-sibling, or a descendant such as a grandchild, niece, or nephew. The dependent must have not contributed more than half of their own finances to support themselves. They must have also lived with the applicant for more than half a year. Most importantly, they must be claimed as a dependent on the applicant’s tax return.

Furthermore, the applicant must have a valid Social Security number and must also be a U.S. citizen or a resident alien.

READ ALSO: $700 Child Tax Credit Proposed In Illinois: Who Would Qualify Once Bill Is Passed?

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