2023 Child Tax Credit
Can parents claim the 2023 child tax credit for children who turned 17 years old in 2022?
In 2021, the American Rescue Plan temporarily expanded the age of eligibility for the 2023 child tax credit from 16 to 17, causing some confusion for parents filing their taxes in 2022, Verify reported. However, the temporary provision has now expired. Therefore, parents cannot claim the 2023 child tax credit for their children who turned 17 in the year 2022.
According to the Internal Revenue Service, there are seven tests to determine if a family is eligible for the 2023 child tax credit.
These tests include the following:
- The child’s age: The child being claimed must be under 17 years old by the end of 2022.
- Relationship to the parent: The child must be related to the claimant as a son, daughter, stepchild, foster child, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of these.
- Dependent Status: The claimant must be able to properly claim the child as a dependent and the child cannot file a joint tax return except to claim a refund of withheld income taxes or estimated taxes paid.
- Residency: The child being claimed must have lived with the claimant for at least half of the year, with some exceptions.
- Financial support: The child cannot provide more than half of their own financial support. If claimed under Form 8332, both the claimant and the custodial parent must provide more than half of the child’s support.
- Citizenship: The child must be a U.S. citizen, U.S. national, or U.S. resident alien with a valid Social Security number.
- Income level of the parent or caregiver: The claimant’s adjusted gross income cannot exceed $200,000 ($400,000 if filing jointly), with the credit incrementally reducing or being eliminated depending on the level of income above the threshold.
It’s important for parents to understand the eligibility requirements for the 2023 child tax credit and other tax breaks, as they can significantly reduce their tax liability. By properly claiming their dependents and filling out the necessary forms, parents can ensure they are getting the tax breaks they are entitled to.