How much are child tax credits worth

What is the Child Tax Credit (CTC)? – Get It Back

What is the Child Tax Credit (CTC)?

This tax credit helps offset the costs of raising kids and is worth up to $2,000 for each qualifying child.  To get a Child Tax Credit refund, you must earn more than $2,500.

Raising children is expensive—recent reports show that the cost of raising a child is over $200,000 throughout the child’s lifetime. The Child Tax Credit (CTC) can give you back money at tax time to help with those costs.  Eligible parents and caregivers can claim a credit up to $2,000 for each child under 17 on their tax return.

Click on any of the following links to jump to a section:

• How much can I get with the CTC?
• Am I eligible for the CTC?
• Credit for Other Dependents
• How to claim the CTC
• Can I still get the 2021 Expanded Child Tax Credit?

Depending on your income and family size, the CTC is worth up to $2,000 per qualifying child. Up to $1,500 is refundable.  CTC amounts start to phase-out when you make $200,000 (head of household) or $400,000 (married couples). Each $1,000 of income above the phase-out level reduces your CTC amount by $50.

If you don’t owe taxes or your credit is more than the taxes you owe, you can get up to $1,500 back in your tax refund.

There are three main requirements to claim the CTC:

1. Income: You need to have more than $2,500 in earnings.
2. Qualifying Child: Children claimed for the CTC must be a “qualifying child”. See below for details.
3. Taxpayer Identification Number: You and your spouse need to have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN).

To claim children for the CTC, they must pass the following tests to be a “qualifying child”:

1. Relationship: The child must be your son, daughter, grandchild, stepchild or adopted child; younger sibling, step-sibling, half-sibling, or their descendent; or a foster child placed with you by a government agency.
2. Age: The child must be under 17 on December 31, 2022.
3. Residency: The child must live with you in the U.S. for more than half the year. Time living together doesn’t have to be continuous. There is an exception for non-custodial parents who are permitted by the custodial parent to claim the child as a dependent (a waiver form signed by the custodial parent is required).
4. Taxpayer Identification Number: Children claimed for the CTC must have a valid SSN. This is a change from previous years when children could have an SSN or an ITIN.
5. Dependency: The child must be considered a dependent for tax filing purposes.

A $500 non-refundable credit is available for families with qualifying dependents who can’t be claimed for the CTC. This includes children with an ITIN who otherwise qualify for the CTC. Additionally, qualifying relatives (like dependent parents) and even dependents who aren’t related to you, but live with you, can be claimed for this credit.

Since this credit is non-refundable, it can only help reduce taxes owed. If you can claim both this credit and the CTC, this will be applied first to lower your taxable income.

File a 2022 tax return with Schedule 8812 “Additional Child Tax Credit.”

Going to a paid tax preparer is expensive and reduces your tax refund. Luckily, there are free options available. These include Volunteer Income Tax Assistance (VITA), GetYourRefund.org and MyFreeTaxes.com.

Yes. It’s not too late to claim your 2021 Expanded Child Tax Credit if you haven’t already. To claim your 2021 Child Tax Credit, you must file a 2021 tax return by April 18, 2025.  If you filed a 2021 tax return but didn’t get the Child Tax Credit and were eligible for it, you can amend your tax return.

Contact your local Volunteer Income Tax Assistance (VITA) site to see if they file 2021 tax returns. You can also use GetYourRefund.org.

Learn more about filing prior year tax returns.

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Taxpayers may be eligible for a credit of up to $2,000 — and $1,500 of that may be refundable.

By

Sabrina Parys 

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Content Management Specialist | Taxes, investing

Sabrina Parys is a content management specialist on the taxes and investing team. Her previous experience includes five years as a project manager, copy editor and associate editor in academic and educational publishing. She has written several nonfiction young adult books on topics such as mental health and social justice. She is based in Brooklyn, New York.

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  Tina Orem 

Tina Orem
Senior Writer/Spokesperson | Small business, taxes

Tina Orem covers small business and taxes at NerdWallet. She has been a financial writer and editor for over 15 years, and she has a degree in finance, as well as a master's degree in journalism and a Master of Business Administration. Previously, she was a financial analyst and director of finance for several public and private companies. Tina's work has appeared in a variety of local and national media outlets.

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Jan 6, 2023

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The child tax credit is a federal tax benefit that plays an important role in providing financial support for American taxpayers with children. People with kids under the age of 17 may be eligible to claim a tax credit of up to $2,000 per qualifying dependent when they file their 2022 tax returns in 2023. $1,500 of that credit may be refundable

We’ll cover who qualifies, how to claim it and how much you might receive per child.

What is the child tax credit?

The child tax credit, commonly referred to as the CTC, is a tax credit available to taxpayers with dependent children under the age of 17. In order to claim the credit when you file your taxes, you have to prove to the IRS that you and your child meet specific criteria.

You’ll also need to show that your income falls beneath a certain threshold because the credit phases out in increments after a certain limit is hit. If your modified adjusted gross income exceeds the ceiling, the credit amount you get may be smaller, or you may be deemed ineligible altogether.

Who qualifies for the child tax credit?

Taxpayers can claim the child tax credit for the 2022 tax year when they file their tax returns in 2023. Generally, there are seven “tests” you and your qualifying child need to pass.

1. Age: Your child must have been under the age of 17 at the end of 2022.

2. Relationship: The child you’re claiming must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister or a descendant of any of those people (e.g., a grandchild, niece or nephew).

3. Dependent status: You must be able to properly claim the child as a dependent. The child also cannot file a joint tax return, unless they file it to claim a refund of withheld income taxes or estimated taxes paid.

4. Residency: The child you’re claiming must have lived with you for at least half the year (there are some exceptions to this rule).

5. Financial support: You must have provided at least half of the child’s support during the last year. In other words, if your qualified child financially supported themselves for more than six months, they’re likely considered not qualified.

6. Citizenship: Per the IRS, your child must be a "U.S. citizen, U.S. national or U.S. resident alien," and must hold a valid Social Security number.

7. Income: Parents or caregivers claiming the credit also typically can’t exceed certain income requirements. Depending on how much your income exceeds that threshold, the credit gets incrementally reduced until it is eliminated.

Did you know...

If your child or a relative you care for doesn't quite meet the criteria for the CTC but you are able to claim them as a dependent, you may be eligible for a $500 nonrefundable credit called the "credit for other dependents. " Check the IRS website for more information.

How to calculate the child tax credit

For the 2022 tax year, the CTC is worth $2,000 per qualifying dependent child if your modified adjusted gross income is $400,000 or below (married filing jointly) or $200,000 or below (all other filers). If your MAGI exceeds those limits, your credit amount will be reduced by $50 for each $1,000 of income exceeding the threshold until it is eliminated.

The CTC is also partially refundable; that is, it can reduce your tax bill on a dollar-for-dollar basis, and you might be able to apply for a tax refund of up to $1,500 for anything left over. This partially refundable portion is called the “additional child tax credit” by the IRS.

How to claim the credit

You can claim the child tax credit on your Form 1040 or 1040-SR. You’ll also need to fill out Schedule 8812 (“Credits for Qualifying Children and Other Dependents”), which is submitted alongside your 1040. This schedule will help you to figure your child tax credit amount, and if applicable, how much of the partial refund you may be able to claim.

Most quality tax software guides you through claiming the child tax credit with a series of interview questions, simplifying the process and even auto-filling the forms on your behalf. If your income falls below a certain threshold, you might also be able to get free tax software through IRS’ Free File.

🤓Nerdy Tip

If you applied for the additional child tax credit, by law the IRS cannot release your refund before mid-February.

Consequences of a CTC-related error

An error on your tax form can mean delays on your refund or on the child tax credit part of your refund. In some cases, it can also mean the IRS could deny the entire credit.

If the IRS denies your CTC claim:

• You must pay back any CTC amount you’ve been paid in error, plus interest.

• You might need to file Form 8862, "Information To Claim Certain Credits After Disallowance," before you can claim the CTC again.

• If the IRS determines that your claim for the credit is erroneous, you may be on the hook for a penalty of up to 20% of the credit amount claimed.

State child tax credits

In addition to the federal child tax credit, a few states, including California, New York and Massachusetts, also offer their own state-level CTCs that you may be able to claim when filing your state return. Visit your state's department of taxation website for more details.

History of the CTC

Like other tax credits, the CTC has seen its share of changes throughout the years. In 2017, the Tax Cuts and Jobs Act, or TCJA, established specific parameters for claiming the credit that will be effective from the 2018 through 2025 tax years. However, the American Rescue Plan Act of 2021 (the coronavirus relief bill) temporarily modified the credit for the 2021 tax year, which has caused some confusion as to which changes are permanent.

Here's a brief timeline of its history.

• 1997: First introduced as a $500 nonrefundable credit by the Taxpayer Relief Act.

• 2001: Credit increased to $1,000 per dependent and made partially refundable by the Economic Growth and Tax Relief Reconciliation Act.

• 2017: The TCJA made several changes to the credit, effective from 2018 through 2025. This included increasing the credit ceiling to $2,000 per dependent, establishing a new income threshold to qualify and ensuring that the partially refundable portion of the credit gets adjusted for inflation each tax year.

• 2021: The American Rescue Plan Act made several temporary modifications to the credit for the 2021 tax year only. This included expanding the credit to a maximum of $3,600 per qualifying child, allowing 17-year-olds to qualify, and making the credit fully refundable. And for the first time in U.S. history, many taxpayers also received half of the credit as advance monthly payments from July through December 2021.

• 2022–2025: The 2021 ARPA enhancements ended, and the credit will revert back to the rules established by the TCJA — including the $2,000 cap for each qualifying child.

Frequently asked questions

Does the child tax credit include advanced payments this year?

The American Rescue Plan Act made several temporary modifications to the credit for tax year 2021, including issuing a set of advance payments from July through December 2021. This enhancement has not been carried over for this tax year as of this writing.

Is the child tax credit taxable?

No. It is a partially refundable tax credit. This means that it can lower your tax bill by the credit amount, and if you have no liability, you may be able to get a portion of the credit back in the form of a refund.

Is the child tax credit the same thing as the child and dependent care credit?

No. This is another type of tax benefit for taxpayers with children or qualifying dependents. It covers a percentage of expenses you made for care — such as day care, certain types of camp or babysitters — so that you can work or look for work. The IRS has more details here.

I had a baby in 2022. Am I eligible to claim the child tax credit when I file in 2023?

If you also meet the other requirements, yes. You'll also need to make sure your child has a Social Security number by the due date of your 2022 return (including extensions).

About the authors: Sabrina Parys is a content management specialist at NerdWallet. Read more

Tina Orem is NerdWallet's authority on taxes and small business. Her work has appeared in a variety of local and national outlets. Read more

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Help for a tax deduction

How to get a Social tax deduction for paid medical services

All personal income tax payers who receive income taxed at a rate of 13% (paragraph 3 of Article 210 of the Tax Code of the Russian Federation) have the right to apply the social tax deduction.

According to subparagraph 3 of paragraph 1 of Article 219 of the Tax Code of the Russian Federation, the Social tax deduction is provided to the Taxpayer for medical services paid for and received by the taxpayer himself, his legal spouse (legal spouse), parents, children (including adopted children) under the age of 18 years old, for wards under the age of 18 (in accordance with the list of medical services approved by the Government of the Russian Federation), as well as in the amount of the cost of medicines for medical use prescribed by their attending physician and purchased by the taxpayer at his own expense. nine0003

To receive this deduction, you must submit a 3-NDFL declaration to the tax office at the place of residence along with an application for a social deduction. Supporting documents must be attached to the declaration:

• income statements in the form 2-NDFL,
• copies of the contract for treatment,
• copies of payment receipts,
• original certificate of payment for services for submission to the medical authorities in accordance with the Order of the Ministry of Health of the Russian Federation N 289, Ministry of Taxation of the Russian Federation N BG-3-04 / 256 of 07/25/2001),
• marriage certificate, taxpayer's birth certificate, child's birth certificate,
• a copy of the license of the medical institution (if necessary, it can be obtained from the website of the medical organization).

Our license is here >>

FOR ISSUING A CERTIFICATE ON PAYMENT FOR MEDICAL SERVICES TO THE CSTO STATE HEATER, THE TAXPAYER MUST SUBMIT:

who plans to receive a tax deduction and paid for the services:
- for himself,
- for a spouse who is in a registered marriage,
- for their parents (but not the spouse's parents),
- for their children under the age of 18.
THE CONTRACT IS NOT ARRANGED OR RENEWED.
CERTIFICATE IS NOT ISSUED if the payer who is a sister, brother, mother-in-law, father-in-law, civil husband or parent of a child over 18 years old, etc. pays for medical services.

3. Original cash receipts

Cash receipts for payment for medical services are the only document confirming the fact of payment at the end of the tax period. Please keep your receipts! nine0009 CHECKS ARE NOT RECOVERED. When paying with a bank card through a terminal, the card must belong to the taxpayer, who is specified in the contract for the provision of medical services, and presented to them personally.

A certificate of payment for medical services for submission to the tax authorities can be obtained by TAX ​​PAYER ,
by contacting the CSTO:
Monday - Friday, 08:00 - 17:00
Saturday 08:00 - 15:00
Yekaterinburg, st. Serafima Deryabina, 32, building of the Polyclinic, 1st floor
Paid Services Registry

In case of remote residence of the taxpayer, a scanned copy of the Certificate of payment for medical services for submission to the tax authorities can be sent by e-mail.
To do this, you need to scan and send to [email protected] the full package of documents listed above and the Application ( download here >> )

Declaration of income for 2022 | Tax and Customs Board

e-MTA

Login to e-MTA :

• with ID-card
• using mobile-ID
• with Smart-ID
• using electronic identification tools (eID) used in the states of the European Union (see list of eID tools)

Income declaration location : in e-MTA menu must be selected Taxes – Income declaration .

Completing the income tax return : fields of the declaration on the Estonian, Russian, English page must be completed in Estonian.

Information on the status of your return can be obtained from e-MTA on the information page of your income statement.

If the submitted income statement after the initial check requires an additional check , you will be notified of this on your information page, and in most cases, instructions for further action. nine0003

You can submit your full income tax return using your smartphone.

At a service bureau

You have three options for submitting a declaration to a service bureau.

A printed copy of the pre-filled tax return is issued to customers at the service bureau from February 15 upon presentation of an identity document.

If you pick up at the service bureau pre-filled declaration , we ask you to submit the same declaration after addition, correction and signing .