In 2021, many American families were provided with the child tax credit with an increment to counterbalance the economic consequence due to the pandemic. However, parents can look forward to a lower amount of CTC for their children in the present year.
In the year 2021, American parents qualified for a Child Tax Credit of $3600 per child falling under the age of six. For the other children as old as seventeen, the CTC was up to $3000. However, those enhancements have now expired and the 2023 CTC has come back to its original format which stands less generous. The CTC would now be $2000 per child falling below the age of 17.
Lisa Niser, tax advisor said that a huge change from 2021-22 is that many special provisions that were only for a year have now come to expiration. No advanced amount or payments have been returned for the CTC to the level of 2020. This is now a massive difference concerning a huge amount of people. Following are the important details that would prove to be important while filing the CTC of 2023.
Structure Of The Child Tax Credit In 2023
The CTC has not been abolished but has come back to the previous structure. There are some requirements that need to be met by you and the child before you qualify for the Child Tax Credit by the IRS.
The income structure of married couples should be $400000 and other filers including taxpayers who are single and also single heads of the house should have an income structure of $200000. Now the new system would be a reduction of $50 for each $1000 of the income that has been exceeding the threshold. Also, every child aiming for the Child Tax Credit must be a citizen of the United States or must be credited with a Social Security number which needs to be valid.
