The Child Tax Credit is a federal program that provides financial assistance to families with children. In 2023, there have been some changes to the program, so parents need to understand what the changes are and how they may be impacted.
1. What is the Child Tax Credit?
The Child Tax Credit is a federal credit that can be claimed by parents who have a qualifying child under the age of 17. This credit reduces the amount of taxes owed, dollar for dollar, and can be worth up to $2,000 per child.
2. Can all parents claim the Child Tax Credit?
Not all parents are eligible to claim the Child Tax Credit. To be eligible, parents must have a qualifying child who is under the age of 17, must be the primary caregiver of the child, and must have a valid Social Security number for the child. Additionally, the parent must have a gross income that is less than a certain threshold, which varies depending on the number of children they have.
3. How much is the Child Tax Credit and what changed in 2023?
In 2023, the Child Tax Credit remains worth up to $2,000 per child. However, there have been some changes to the income thresholds and other eligibility requirements, so parents need to check the latest information.
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4. Are cash payments available for the Child Tax Credit?
For some families, the Child Tax Credit can result in a refundable credit, meaning that if the credit exceeds the amount of taxes owed, the family will receive a cash payment from the government. The amount of this cash payment will depend on the family’s income and other eligibility factors.
5. Do co-parents that share custody and support 50/50 both get the Child Tax Credit?
Typically, only one parent can claim the Child Tax Credit for a given child. If the parents are unmarried and share custody and support equally, the parent who claims the child as a dependent on their tax return is usually the one who is eligible to claim the credit.
6. Will the Child Tax Credit affect public benefits?
Receiving the Child Tax Credit can impact a family’s eligibility for other public benefits, such as food stamps or housing assistance. It’s important for families to carefully consider how the credit may affect their eligibility for other benefits and to consult with a tax professional if necessary.
The Child Tax Credit remains an important program for families with children, and the 2023 changes to the program mean that parents should review their eligibility and the amount they may receive. Whether you’re eligible for a cash payment or simply looking to reduce your tax bill, the Child Tax Credit is a valuable resource for parents.
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