The Child Tax Credit was enhanced during the pandemic by the American Rescue Plan. It was increased from $2,000 to $3,000 per child for children over six years old and $2,000 to $3,600 for children under six.
According to Marca, the Democrats have been trying to expand the CTC rules and make them permanent before the Republicans took over the House this year. . However, it was discarded from the 2022 IRA bill and the 2023 $1.7 trillion Omnibus government funding bill, which means CTC will revert to its pre-pandemic levels at $2,000 per child.
2023 Child Tax Credit to revert to pre-pandemic level at $2,000 per child. (Photo: Getty Images)
Also Read: Child Tax Credit: Residents in Illinois Could Receive Permanent Payment
The CTC is available to parents with dependents under 17 years old and who meet certain eligibility requirements, which include the child must be eligible to be claimed as a dependent and live at the same residence with the taxpayer for more than half the year. The child must also have a valid taxpayer identification number issued by the IRS. This rule allows documented immigrants and permanent residents to claim credit as well.
Diaro AS said that taxpayers should reach the following requirements. Lower-income parents must have an income of at least $2,500. Meanwhile, to claim the full credit, the adjusted gross income (AGI) of single filers must be less than $200,000 and $400,000 for couples filing jointly.
The credit can be calculated by subtracting $2,500 from the “earned income” and multiplying it by 15%. Earned income does not include Social Security benefits and unemployment compensation.
Read More: Child Tax Credit F.A.Q.s
