How qualify for child tax credit
2022-2023 Child Tax Credit: Requirements, How to Claim
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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
Sabrina Parys
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
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Tina Orem is an editor at NerdWallet. Prior to becoming an editor, she covered 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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Nerdy takeaways
For tax returns filed in 2023, the child tax credit is worth up to $2,000 per qualifying dependent under the age of 17.
The credit is partially refundable. Some taxpayers may be eligible for a refund of up to $1,500.
The credit amount decreases if your modified adjusted gross income exceeds $400,000 (married filing jointly) or $200,000 (all other filers).
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.
Internal Revenue Service
. Child Tax Credit.
View all sources
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.
Age: Your child must have been under the age of 17 at the end of 2022.
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).
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.
Residency: The child you’re claiming must have lived with you for at least half the year (there are some exceptions to this rule).
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.
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.
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.
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How much is the 2022 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 tax credit; 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 child tax credit in 2023
You can claim the 2022 child tax credit on the federal tax return (Form 1040 or 1040-SR) that you file by April 18, 2023. 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.
When to expect your CTC refund
Per the agency, early filers who selected direct deposit as their refund method, e-filed, and submitted an error-free return should have seen refunds hit their accounts in late February.
If you want to check on the status of your return, you can use the agency's "Where's My Refund" tool.
Internal Revenue Service
. When to Expect Your Refund if You Claimed the Earned Income Tax Credit or Additional Child Tax Credit.
View all sources
Consequences of a child tax credit 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.
Child tax credit vs. child and dependent care credit
Though similar sounding, the child tax credit and the child and dependent care credit are not the same thing. The child tax credit is a tax incentive for people with children, while the child and dependent care credit is another tax credit for working parents or caretakers designed to help offset expenses such as day camp or after-school care. Both credits have different rules and qualifications.
What is the credit for other dependents?
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.
" The IRS has a tool that can help you to determine if your dependent qualifies.
Internal Revenue Service
. Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents?.
Accessed Mar 14, 2023.
View all sources
History of the child tax credit
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.
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. The child and dependent care credit 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.
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 an editor at NerdWallet. Before becoming an editor, she was 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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The Child Tax Credit | The White House
To search this site, enter a search termThe Child Tax Credit in the American Rescue Plan provides the largest Child Tax Credit ever and historic relief to the most working families ever – and as of July 15th, most families are automatically receiving monthly payments of $250 or $300 per child without having to take any action.
The Child Tax Credit will help all families succeed.
The American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and from $2,000 to $3,600 for children under the age of six, and raised the age limit from 16 to 17. All working families will get the full credit if they make up to $150,000 for a couple or $112,500 for a family with a single parent (also called Head of Household).
Major tax relief for nearly
all working families:
$3,000 to $3,600 per child for nearly all working families
The Child Tax Credit in the American Rescue Plan provides the largest child tax credit ever and historic relief to the most working families ever.
Automatic monthly payments for nearly all working families
If you’ve filed tax returns for 2019 or 2020, or if you signed up to receive a stimulus check from the Internal Revenue Service, you will get this tax relief automatically. You do not need to sign up or take any action.
President Biden’s Build Back Better agenda calls for extending this tax relief for years and years
The new Child Tax Credit enacted in the American Rescue Plan is only for 2021. That is why President Biden strongly believes that we should extend the new Child Tax Credit for years and years to come. That’s what he proposes in his Build Back Better Agenda.
Easy sign up for low-income families to reduce child poverty
If you don’t make enough to be required to file taxes, you can still get benefits.
The Administration collaborated with a non-profit, Code for America, who created a non-filer sign-up tool that is easy to use on a mobile phone and also available in Spanish. The deadline to sign up for monthly Child Tax Credit payments this year was November 15. If you are eligible for the Child Tax Credit but did not sign up for monthly payments by the November 15 deadline, you can still claim the full credit of up to $3,600 per child by filing your taxes next year.
See how the Child Tax Credit works for families like yours:
-
Jamie
- Occupation: Teacher
- Income: $55,000
- Filing Status: Head of Household (Single Parent)
- Dependents: 3 children over age 6
Jamie
Jamie filed a tax return this year claiming 3 children and will receive part of her payment now to help her pay for the expenses of raising her kids. She’ll receive the rest next spring.
- Total Child Tax Credit: increased to $9,000 from $6,000 thanks to the American Rescue Plan ($3,000 for each child over age 6).
- Receives $4,500 in 6 monthly installments of $750 between July and December.
- Receives $4,500 after filing tax return next year.
-
Sam & Lee
- Occupation: Bus Driver and Electrician
- Income: $100,000
- Filing Status: Married
- Dependents: 2 children under age 6
Sam & Lee
Sam & Lee filed a tax return this year claiming 2 children and will receive part of their payment now to help her pay for the expenses of raising their kids.
They’ll receive the rest next spring.- Total Child Tax Credit: increased to $7,200 from $4,000 thanks to the American Rescue Plan ($3,600 for each child under age 6).
- Receives $3,600 in 6 monthly installments of $600 between July and December.
- Receives $3,600 after filing tax return next year.
-
Alex & Casey
- Occupation: Lawyer and Hospital Administrator
- Income: $350,000
- Filing Status: Married
- Dependents: 2 children over age 6
Alex & Casey
Alex & Casey filed a tax return this year claiming 2 children and will receive part of their payment now to help them pay for the expenses of raising their kids. They’ll receive the rest next spring.
- Total Child Tax Credit: $4,000. Their credit did not increase because their income is too high ($2,000 for each child over age 6).
- Receives $2,000 in 6 monthly installments of $333 between July and December.
- Receives $2,000 after filing tax return next year.
-
Tim & Theresa
- Occupation: Home Health Aide and part-time Grocery Clerk
- Income: $24,000
- Filing Status: Do not file taxes; their income means they are not required to file
- Dependents: 1 child under age 6
Tim & Theresa
Tim and Theresa chose not to file a tax return as their income did not require them to do so. As a result, they did not receive payments automatically, but if they signed up by the November 15 deadline, they will receive part of their payment this year to help them pay for the expenses of raising their child. They’ll receive the rest next spring when they file taxes. If Tim and Theresa did not sign up by the November 15 deadline, they can still claim the full Child Tax Credit by filing their taxes next year.
- Total Child Tax Credit: increased to $3,600 from $1,400 thanks to the American Rescue Plan ($3,600 for their child under age 6).
If they signed up by July: - Received $1,800 in 6 monthly installments of $300 between July and December.
- Receives $1,800 next spring when they file taxes.
- Automatically enrolled for a third-round stimulus check of $4,200, and up to $4,700 by claiming the 2020 Recovery Rebate Credit.
Frequently Asked Questions about the Child Tax Credit:
Overview
Who is eligible for the Child Tax Credit?
Getting your payments
What if I didn’t file taxes last year or the year before?
Will this affect other benefits I receive?
Spread the word about these important benefits:
For more information, visit the IRS page on Child Tax Credit.
Download the Child Tax Credit explainer (PDF).
ZIP Code-level data on eligible non-filers is available from the Department of Treasury: PDF | XLSX
The Child Tax Credit Toolkit
Spread the Word
Is it necessary to apply annually for a standard deduction
Is it necessary to apply annually for a standard deduction - BUKH.
1C, a website to help an accountant News for an accountant, accounting, taxation, reporting, FSB, traceability and labeling, 1C: Accounting
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06.08.2020
The Ministry of Finance clarified whether an employee, in order to receive a standard tax deduction, must annually submit an application to the employer and submit a certificate from the educational organization where his child is studying.
Letter No. 03-04-05/63596 dated 21.07.2020 reminds that the standard tax deduction is made for every child under the age of 18, as well as for every full-time student, graduate student, resident, intern, student, student under the age of 24.
The standard child tax credit requires a written application from the child's parent and proof of eligibility for the child's tax credit.
At the same time, the Tax Code of the Russian Federation does not contain requirements for the annual submission of an application to receive a standard tax deduction for a child.
This means that if the taxpayer's eligibility for the standard child credit has not ended, no re-application is required regardless of the end of the tax period.
However, if the application states that the employee is only asking for a child tax credit in a particular year, they must submit a new application to receive the child tax credit in the following year.
One of the supporting documents for the provision of a standard deduction for each full-time student, graduate student, intern, intern, student, cadet aged 18 to 24 is a certificate from the organization engaged in educational activities, which indicates the period and form of the child's education .
Accordingly, when deciding on the frequency of submitting a certificate, one should proceed from the fact that the tax deduction is provided for the period of education of the child (children) in an organization engaged in educational activities.
This means that if the certificate indicates the entire period of the child's education, then the annual submission of such a document is also not required.
Topics: standard tax deduction, documentation, personal income tax deduction, employee rights, deduction for training
Category: Documenting , Personal income tax (PIT)
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Can a stepfather receive a standard personal income tax deduction for a child if custody and adoption are not registered, and the biological father is indicated on the birth certificate?
- March 11, 2016
In accordance with paragraphs.
4 p. 1 art. 218 of the Code, the standard tax deduction for each month of the tax period applies, in particular, to the parent, spouse (wife) of the parent, on whose support the child is.
One of the conditions under which the right to use the specified tax deduction is granted is the fact that the child is on the provision of parents or the parent's spouse.
Thus, if the mother's child from the first marriage lives together with the stepfather, then regardless of his adoption the standard tax deduction can be granted to the stepfather, on whose support he is.
Eligibility documents for the standard tax credit may include, but are not limited to, a copy of a birth certificate, a marriage registration certificate, and, in the opinion of the Department, a written statement from the spouse that the child is jointly dependent on the spouses (mother and stepfather) .
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