Music. Hey, I'm Joe and I'm Karen, and we're with M&M Income Tax Service. We're back with another tax topic or tax tip, and hopefully, it's going to answer one of your questions today. Karen, what's today's tax topic? It's the new child tax credit. Absolutely, it's really been greatly expanded and increased. We wanted to cover it with you because now it has three parts. It's greatly expanded. What are our parts, Karen? Well, you have the child tax credit, the additional child tax credit, and the other dependent credit. Okay, well, the child tax credit was expanded, the additional was expanded, and the other dependent credit is brand-new. Karen, let's give them a few details on each type of credit. Let's go ahead and look at the child tax credit first. The child tax credit is a credit up to two thousand dollars for each child you have that's age 16 or under. This credit can actually reduce your tax to zero, but not below, right? It's been greatly expanded under the new tax laws for higher income individuals. Absolutely, there are going to be a lot of higher income individuals. We're talking about income ranges from $75,000 to $200,000 that previously phased out. They wouldn't actually qualify for the credit. They're going to actually get the credit now, and that's going to be huge for them. You have to have a social security number to qualify for the credit, right? Absolutely, you must have a social security number. Karen, our next type of credit is the additional child tax credit. How does it work? Well, that means that it's refundable. You can get up to fourteen hundred dollars for each child you have aged 16 and under. So, that means that you could get more than you...
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8812 2023 Form: What You Should Know
The credit may be claimed by any child (regardless of the child's citizenship). For married taxpayers, the credit is split between one or both spouses. The child's tax-filing status also affects the child's eligibility for the credit. The additional child tax credit may be claimed for any taxable year beginning on or after 2017. The tax year the child appears on the return determines whether the credit is allowed. Child tax credit allowed for 2023 The credit is available for the child, but is not included in the gross income (including income from Social Security). The IRS must determine if the child is a qualifying child based on the child's citizenship, age/residency, and income. This section explains who is an individual child, and who is a qualifying child. Who is an individual child. For purposes of the child tax credit, an individual is any child born to a U.S. citizen or resident (or within the U.S. if a U.S. citizen or resident) on or after January 1, 2010. Who is a qualifying child. To be considered a qualifying child for purposes of the child tax credit, the child must have (1) a tax liability on his or her own tax return for a year; (2) a parent who is an individual (and who must be included, if applicable, on a parent's return); and (3) a parent (other than a child) who has not previously claimed the child's exemption on his or her tax return or was not treated as a parent for other tax purposes by the IRS. For married filing jointly, only one of the above factors must be true to meet the definition of a qualifying child. Child Tax Credit 2023 — Filing Status & Taxable Year The child tax credit for 2023 is available to taxpayers in the following tax filing statuses. If a tax filing status applies to you, it means that the child tax credit is available to you. Married filing jointly : This tax filing status applies if your child has not claimed an exemption. If the parent claiming you as a qualifying child in this status is not married to you, you can claim the child's child tax credit on your own 2023 tax return. If you and the qualifying child(men) are married filing jointly, you can claim the child's child tax credit on the 2023 tax return of your qualifying child(men).
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