The Child Tax Credit is a tax credit that helps families with the cost of raising children. It is available to most families with children under the age of 17. The amount of the credit depends on the age of the child and the family’s income. Families can receive the credit even if they do not owe any taxes. The credit is paid in monthly installments from July to December. Families can choose to receive the payments by direct deposit, check, or debit card.
Eligibility Requirements
Not everyone gets the child tax credit.
- The child must be under the age of 17.
- The child must be a U.S. citizen or resident.
- The child must live with you for more than half of the year.
- You must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
- You must meet income limits. For 2022, the phase-out for the full credit begins at $150,000 for married couples filing jointly, $112,500 for head of household filers, and $75,000 for all other filers.
The amount of the child tax credit is phased out for higher-income taxpayers. The phase-out begins at $400,000 for married couples filing jointly, $200,000 for head of household filers, and $400,000 for all other filers.
| Filing Status | Phase-Out Begins At |
|---|---|
| Married Filing Jointly | $400,000 |
| Head of Household | $200,000 |
| All Others | $400,000 |
Income Limits for the Child Tax Credit
The Child Tax Credit (CTC) is a tax credit that helps families with the costs of raising children. The CTC is available to eligible taxpayers who have qualified children under the age of 17. The amount of the CTC depends on the taxpayer’s income and the number of qualifying children.
For 2023, the income limits for the CTC are as follows:
- Single filers: $200,000
- Married couples filing jointly: $400,000
- Married couples filing separately: $200,000
- Head of household: $200,000
| Filing Status | Income Limit |
|---|---|
| Single | $200,000 |
| Married, filing jointly | $400,000 |
| Married, filing separately | $200,000 |
| Head of household | $200,000 |
Taxpayers who earn more than the income limits may still be eligible for a reduced CTC. The amount of the reduced CTC is phased out gradually as income increases.
Child Dependency
To claim the Child Tax Credit, the child must be:
- Under age 17 at the end of the tax year.
- Your child, stepchild, foster child, sibling, step-sibling, or a descendant of any of these (for example, your grandchild, niece, or nephew).
- A U.S. citizen, U.S. national, or a U.S. resident alien.
- Claimed on your tax return (even if the child lived with the other parent for most of the year).
- Not providing more than half of his or her own support.
- Enrolled as a full-time student at the end of the tax year, if between the ages of 19 and 24.
- Has a valid Social Security number (SSN).
If the child does not have an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN) through the IRS.
| Relationship to child | Must live with you |
|---|---|
| Child, stepchild, foster child | Yes, for more than half the year |
| Sibling, step-sibling, or descendant | Yes, for more than half the year |
| Parent, grandparent, or other adult | No |
Filing Status
To be eligible for the Child Tax Credit, taxpayers must meet certain requirements, including filing status. The following are the eligible filing statuses:
- Married filing jointly
- Married filing separately (only if you lived apart from your spouse for the entire year and you paid more than half the costs of keeping up a home for your child)
- Head of household (you must pay more than half the costs of keeping up a home for your child and meet certain other requirements)
- Qualifying widow(er) (you must meet certain requirements, such as not remarrying since your spouse died and paying more than half the costs of keeping up a home for your child)
| Filing Status | Must Meet Additional Requirements |
|---|---|
| Married Filing Jointly | No |
| Married Filing Separately | Lived apart from spouse for entire year and paid more than half the cost of keeping up a home for your child |
| Head of Household | Pay more than half the cost of keeping up a home for your child |
| Qualifying Widow(er) | Must not remarry and must pay more than half the cost of keeping up a home for your child |
That’s a wrap on the Child Tax Credit! Thanks for sticking with me to the end. I hope you found this information helpful, whether you’re expecting a little one or already have kids and want to make sure you’re taking advantage of all the financial support available. Remember, the rules and eligibility requirements can change from year to year, so be sure to check back in later if you have any questions. In the meantime, be sure to explore our other resources for parents and families. Thanks for reading!