While filing their annual tax returns, American families often claim the Child Tax Credit (CTC). In this process, these households either reduce the money they owe or increase their refund.
Thus, during the year 2021, the U.S. Congress decided to approve a program that increased the total amount of the credit per child. This is the American Rescue Plan, which also gave individuals the opportunity to collect a portion of the tax credit in advance on a monthly basis.
However, some are currently unsure whether they will get the same child tax credit to a greater extent when they file their returns this year. So says online research that compiled all this information into data recently.
Will the CTC be higher in 2023?
It should be mentioned here that the American Bailout Plan only decided to extend the child tax credit for the 2021 tax year. Therefore, the answer is clear: families will not get a higher child tax credit in this year 2023.
That is, by tax year 2022, the credit is back to the pre-pandemic amount. A tax credit of $3600.00 USD for children under five years of age will be available to parents or guardians who meet a number of requirements. Likewise, such parents will get $3000.00 USD if they have children between the ages of 6 and 17.
In previous tax years, the Child Tax Credit was $2000.00 USD per child. Therefore, the increased credit was distributed on a monthly basis as a reward for those who filed their taxes early.
At the beginning of July 2021, families used to receive between $250.00 USD and $300.00 USD per child each month. In this regard, individuals also claimed the remaining portion of the credit when they filed their 2021 tax return.
However, Congress made the decision to stop expanding this program, which reversed the credit to $2000.00 USD per child.
Comments / 1