What’s the Youngster Tax Credit score and How Do I Qualify?

You might be listening to varied details about the Youngster Tax Credit score and you might have questions like, “How a lot is the kid tax credit score this 12 months?” and “How do I qualify for the kid tax credit score?”

You could have additionally heard a few doable change to the Youngster Tax Credit score, however don’t fear. TurboTax has you coated and is updated with the newest tax legal guidelines so you’ll be able to file your taxes with confidence and precisely declare the Youngster Tax Credit score if you’re eligible.  There is no such thing as a must delay. File now to get your refund as quickly as doable. Ought to tax legal guidelines change, TurboTax will probably be up to date rapidly as with earlier tax regulation modifications and can assist make sure that you obtain the utmost refund you’re  eligible for. 

Here’s a breakdown of what you want to know in regards to the Youngster Tax Credit score.

What’s the Youngster Tax Credit score?

The Youngster Tax Credit score helps tax filers with qualifying youngsters get a tax break.  

How a lot is the kid tax credit score and what are the advantages?

For tax 12 months 2023, the Youngster Tax Credit score advantages are as follows:

• Credit score modified from as much as $3,600 per dependent little one below COVID aid in tax 12 months 2021 to its pre-COVID quantity as much as $2,000 for every dependent little one.
• Every dependent little one should be below age 17 on the finish of the 12 months.
• Not absolutely refundable like below COVID aid, however is refundable as much as $1,600, which means you’ll be able to rise up to $1,600 again even if you happen to don’t owe as much as $1,600 in taxes.
• Not like below COVID aid, no advance funds had been issued for tax 12 months 2023.
• The credit score is accessible if you happen to earn as much as $200,000 as single tax filer or head of family (or as much as $400,000 if you’re a married couple submitting collectively

How Do I Qualify for the Youngster Tax Credit score?

So as to declare the tax credit score, you should meet these necessities:

• Your little one has a Social Safety quantity (SSN) that’s legitimate for employment and must be a U.S. citizen, U.S. nationwide, or U.S. resident
• Your little one is below the age of 17 on the finish of the 12 months
• Be your son, daughter, stepchild, eligible foster little one, brother, sister, stepbrother, stepsister, half-brother, half-sister,  or descendant of them (suppose grandchild, niece, or nephew
• Your little one is claimed as a dependent
• Your little one has lived with you for greater than half the 12 months
• Your little one didn’t present greater than half of their very own help
• Your little one cannot file a joint return with their partner for the tax 12 months or file it solely to assert a refund of withheld earnings tax or estimate tax paid 

In case you have a dependent that doesn’t qualify for the Youngster Tax Credit score, you could possibly declare the  Different Dependent Credit score for a most credit score of $500 for every dependent who meets sure situations. 

The Youngster Tax Credit score, first reverted to Pre-American Rescue Plan tax guidelines in tax 12 months 2022 (the taxes filed in 2023), inflicting some tax filers to see decrease refunds than they had been accustomed to when COVID aid was in place. Though not a new tax regulation change for tax 12 months 2023, we need to be sure to are conscious of the decrease quantity since you could be claiming the Youngster Tax Credit score for the primary time once more since COVID aid was in place. 

Ought to I wait to file?

No, there isn’t a must delay.  File now to get your refund as quickly as doable. TurboTax is updated with the newest tax legal guidelines. Ought to tax legal guidelines change, TurboTax will probably be up to date rapidly as in earlier tax regulation modifications and can assist make sure you obtain the utmost refund you’re eligible for.

Examine Out Different Tax Credit

When you’re claiming the Youngster Tax Credit score, you may additionally be eligible for the Youngster and Dependent Care Credit score if you happen to despatched your little one to daycare and even day camp, which can additional scale back your taxes.

Don’t fear about figuring out about this tax profit. Meet with a TurboTax Full Service skilled who can put together, signal and file your taxes, so that you could be 100% assured your taxes are finished proper. Begin TurboTax Dwell Full Service right now, in English or Spanish, and get your taxes finished and off your thoughts.