Child Tax Credit 2023, what is the new news?

USA Diario
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The Child Tax Credit for the 2023 tax season can be claimed as long as the parents meet the established requirements.

It is necessary to clarify that the payments will not be as large as in 2021, when the benefits were up to $3600.00 USD per dependent.

It so happens that after the benefit extension expired in 2022, the payment parameters returned to their pre-pandemic values. As a result, the eligibility of thousands of American families will be limited.

However, in the current tax season, taxpayers with children will be able to receive up to $2000.00 per child at tax time. As was the case in 2022.

The credit is available to parents with dependents who were 17 years of age or younger before December 31 of last year. This is established by the Internal Revenue Service (IRS).

What are the requirements for dependents and taxpayers?

Children or dependents must have been under 17 years of age before December 31, 2022. They must also be eligible to be claimed as dependents on the tax return. In addition, they must have lived in the same residence as the taxpayer for more than half of 2022.

Finally, dependents must have provided less than half of their own financial support during the tax year.

While children or dependents must meet certain parameters established by law, the same is true for parents. For this reason, and to receive the full credit, taxpayers had to have adjusted gross income (AGI) as follows.

Less than $200,000 USD in the case of single filers and $400,000 USD for married filing jointly. Here it should be clarified that the credit will reduce $50.00 USD for every $1000.00 USD above the threshold.

Finally, low-income taxpayers must have an income of at least $2500.00 USD to be eligible.

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