The Child Tax Credit (CTC) is a tax break that helps families with qualifying children reduce their tax liability. The CTC is available to both low- and moderate-income families, and the amount of the credit varies depending on the child’s age and the family’s income.
Age Requirements
One of the key eligibility requirements for the CTC is that the child must be under a certain age. For the 2023 tax year, the child must be under age 17 at the end of the year. This means that children who turn 17 during the year are not eligible for the CTC.
Other Eligibility Requirements
In addition to the age requirement, there are several other eligibility requirements that must be met in order to claim the CTC. These requirements include:
- The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
- The child must have a valid Social Security number.
- The child must live with the taxpayer for more than half the year.
- The child cannot be claimed as a dependent on someone else’s tax return.
- The taxpayer must meet certain income requirements.
Income Limits
The amount of the CTC that a taxpayer can claim is phased out for higher-income taxpayers. For the 2023 tax year, the phase-out begins at $200,000 for single filers and $400,000 for married couples filing jointly.
How to Claim the CTC
Taxpayers can claim the CTC by completing the IRS Form 1040 and attaching Schedule 8812, Credits for Qualifying Children and Other Dependents. The CTC is a refundable credit, which means that taxpayers can receive the credit even if they do not owe any taxes.
Empire State Child Credit
In addition to the federal CTC, New York State also offers a state-level CTC known as the Empire State Child Credit (ESCC). The ESCC is available to New York State residents who have qualifying children under the age of 17. The amount of the ESCC varies depending on the child’s age and the family’s income.
Age Requirements for ESCC
The age requirements for the ESCC are the same as the age requirements for the federal CTC. For the 2023 tax year, the child must be under age 17 at the end of the year.
Other Eligibility Requirements for ESCC
The eligibility requirements for the ESCC are similar to the eligibility requirements for the federal CTC. However, there are a few key differences. These differences include:
- The child does not need to have a valid Social Security number to be eligible for the ESCC.
- The child does not need to live with the taxpayer for more than half the year to be eligible for the ESCC.
Income Limits for ESCC
The income limits for the ESCC are different from the income limits for the federal CTC. For the 2023 tax year, the phase-out for the ESCC begins at $110,000 for married couples filing jointly and $75,000 for single filers.
How to Claim the ESCC
Taxpayers can claim the ESCC by completing the New York State Form IT-213, Claim for Empire State Child Credit. The ESCC is a refundable credit, which means that taxpayers can receive the credit even if they do not owe any taxes.
The CTC and ESCC are valuable tax credits that can help families with qualifying children save money on their taxes. The eligibility requirements for these credits are complex, so it is important to carefully review the requirements before claiming the credits.
What happens if my child turns 18 in 2021 child tax credit?
FAQ
Will I still get the child tax credit if my child turns 18?
When your child turns 18 can you still claim them on your taxes?
Who qualifies for child tax credit 2024?
Can I claim my daughter as a dependent if she made over $4000?
Can a 17-year-old get a child tax credit?
The credit’s scope has been expanded. The American Rescue Plan allowed 17-year-olds to qualify for the Child Tax Credit. Previously, only children 16 and younger qualified. Many eligible taxpayers received monthly advance payments of half of their estimated 2021 Child Tax Credit amounts during 2021 from July through December.
When will I get my Child Tax Credit?
Families caring for children were able to receive financial assistance on a consistent monthly basis from July to December 2021, instead of waiting until tax filing season to receive all of their Child Tax Credit benefits. File your taxes to get your full Child Tax Credit — now through April 18, 2022.
What if I don’t qualify for the child tax credit?
Families that do not qualify for the credit using these lower income limits are still eligible for the $2,000 per child credit using the original Child Tax Credit income and phase out amounts. In addition, the entire credit is fully refundable for 2021.
What if I didn’t receive advance Child Tax Credit payments in 2021?
If you didn’t receive advance Child Tax Credit payments in 2021 for a qualifying child, you may claim the full amount of your allowable Child Tax Credit for that child when you file your 2021 tax return during the 2022 tax filing season.