The child tax credit is a federal benefit that provides much-needed financial support to parents. Parents with children below 17 years of age could be eligible to claim the child tax credit of up to $2,000. Such parents need to file their tax return in 2023 to claim the child tax credit for 2022. However, if your child was born in 2023, you won’t be able to claim the credit by filing the tax return this year.
When To Claim The Child Tax Credit For A Newborn
When you are filing taxes, you can include the details for that tax year. This means that when filing 2022 taxes in 2023, you can include information on children born in 2022 and before.
So, if your child was born in 2023, you will have to wait for next year to claim the child tax credit for that child. So, you will be able to claim the child tax credit for a baby born this year at the time of filing taxes in 2024.
Although you won’t be able to claim the child tax credit (CTC) for a child born in 2023 until 2024, it is important that you are aware of the requirements, as well as documents that will help you to claim the credit.
As noted above, you need to file a federal tax return (Form 1040 or 1040-SR). Also, you need to fill out Schedule 8812 (Credits for Qualifying Children and Other Dependents) to claim the CTC. This schedule helps taxpayers determine their child tax credit amount, as well as the partial refund that they may be able to claim.
In addition to the federal child tax credit, several states also offer their own child tax credit. You will be able to claim the state’s CTC at the time of filing your state return.
Who Qualifies For The Child Tax Credit?
To qualify for the CTC, you need to ensure that you and your child meet the requirements set by the IRS. Also, you need to meet the income threshold to get the child tax credit. The credit amount gradually phases out after a certain income limit.
So, if your annual income exceeds the threshold limit, your credit amount could be reduced, or you may even become ineligible for the credit altogether.
For instance, if your modified adjusted gross income (MAGI) is $400,000 or below (married filing jointly), then you could get the full credit amount of $2,000. And, if your income exceeds this threshold, then your CTC amount will be reduced by $50 for each $1,000 of your income that exceeds the threshold income.
The child tax credit is also partially refundable. That means that the credit amount could help you to reduce your tax bill on a dollar-for-dollar basis. Moreover, you could even apply for a refund of up to $1,500 for anything left over.
