How Much Can You Get Back in Taxes for a Child?

The Child Tax Credit (CTC) is a tax credit that helps families with the cost of raising children. The amount of the credit varies depending on the age of the child and the taxpayer’s income.

For 2023, the CTC is worth up to $2,000 per qualifying child.

To be eligible for the CTC, the child must meet the following requirements:

• The child must be under the age of 17 at the end of the tax year.
• The child must be a U.S. citizen, U.S. national, or U.S. resident alien.
• The child must live with the taxpayer for more than half of the year.
• The child cannot provide more than half of their own support during the year.
• The taxpayer must claim the child as a dependent on their tax return.

The CTC is phased out for taxpayers with higher incomes. The phase-out begins at $200,000 for single filers and $400,000 for married couples filing jointly. The credit is completely phased out for taxpayers with incomes above $260,000 for single filers and $520,000 for married couples filing jointly.

Example:

A married couple with two children under the age of 17 and a 2023 income of $100,000 would be eligible for the full $4,000 CTC.

How to Claim the CTC

The CTC is claimed on the taxpayer’s federal income tax return. The taxpayer will need to provide the child’s name, Social Security number, and relationship to the taxpayer.

Refundable Portion of the CTC

The CTC is a refundable tax credit. This means that if the amount of the credit is greater than the taxpayer’s tax liability, the taxpayer will receive a refund for the difference.

Advance Child Tax Credit Payments

In 2021, the IRS began sending advance CTC payments to eligible families. These payments were made monthly from July through December. The advance payments were equal to half of the taxpayer’s estimated CTC for the year.

Changes to the CTC for 2023

The CTC has been temporarily expanded for 2023. The maximum credit amount has been increased to $2,000 per child, and the income limits for phasing out the credit have been raised. These changes are scheduled to expire after 2023.

Other Tax Benefits for Families

In addition to the CTC, there are a number of other tax benefits available to families. These benefits include the Earned Income Tax Credit (EITC), the Child and Dependent Care Tax Credit, and the Adoption Tax Credit.

The CTC is a valuable tax credit that can help families with the cost of raising children. The credit is available to taxpayers with incomes up to $200,000 for single filers and $400,000 for married couples filing jointly. The CTC is phased out for taxpayers with higher incomes. The CTC is claimed on the taxpayer’s federal income tax return. The CTC is a refundable tax credit, which means that if the amount of the credit is greater than the taxpayer’s tax liability, the taxpayer will receive a refund for the difference.