With the year 2023 approaching, the American Rescue plan no longer has any effect on United States homes. The IRS no longer awards Child Tax Credit checks at the pandemic level. The dollar amount has dropped for eligible children, but the IRS still sends Child Tax Credit to recipients.
Also note that eligibility is more restricted than it was in 2021. This is due to the Tax Cuts and Jobs Act of 2017. If Congress does not change anything before 2025, this rule will be that way for the IRS until then.
Taxpayers who have a qualifying child can get a credit of up to $2,000. But it’s not $2,000 total, it’s $2,000 per child. Mind you, the requirements are very limited.
During this year the credit is partially refundable. Note that there is an income threshold to claim up to $1,400. This threshold is known as the “Additional Child Tax Credit”.
Who can apply for the 2022 Child Tax Credit from the IRS?
In order to apply we must be a parent of dependent children under the age of 17 on December 31 of last year, 2022. In addition to this, more requirements must also be met.
- The child must be eligible to be claimed as a dependent.
- He or she must live in the same residence as the taxpayer for more than half of the year.
- The child cannot contribute more than half of his or her own support during the attorney’s tax year.
- Must have a valid taxpayer identification number. That is, he or she must have a Social Security number with work authorization.
Besides the requirements, there are a few others that children must meet in order for the IRS to grant the Child Tax Credit. These are the most general ones, though.
Requirement for parents
In addition to the requirements for the children themselves, the IRS also places a primary requirement on the parents applying for the Child Tax Credit.
Have an adjusted gross income of less than $200,000 for single filers. This changes to $400,000 for married filing jointly. It is important to keep in mind that the credit sees a $50 reduction every $1,000 above that threshold.
If you have any questions about applying for this child tax credit, you can contact the IRS directly or hire a financial advisor to help you with the process.