The Child Tax Credit (CTC) has experienced many changes over the last six years, but it is still very valuable for parents. For tax years 2022 and 2023, the CTC can be claimed by taxpayers with qualifying children under the age of 17. A $500 credit for other dependents is available for dependents that do not meet the qualifying child requirements (e.g., certain college age kids).

What is the Child Tax Credit?

The CTC is a $2,000 credit for each qualifying child under the age of 17. This credit is partially refundable for up to a maximum of $1,400 per qualifying child, meaning that you can receive a tax refund even if you don’t owe tax for the year. The refundable portion is adjusted annually for inflation and is subject to an earned income threshold of $2,500 to determine the amount of the credit that is refundable to the taxpayer.

Do I qualify?

To qualify for the full benefit of the 2022 CTC, each qualifying child must meet the eligibility factors of a dependent and your annual adjusted gross income must not be more than $200,000 ($400,000 if married and filing jointly). For parents with higher incomes, a partial credit may be available.

Credit for other dependents

A $500 nonrefundable credit is available for each dependent who does not meet the qualifying child test under the CTC. While there is no age limit for this credit, there are tests for dependency that must be met. This credit applies to children age 17 and older, dependent parents, qualifying relatives supported by you, and dependents living with you who aren’t related to the taxpayer.

How do I claim the Child Tax Credit?

To claim the CTC for a qualifying child, you must include the child’s Social Security number on your return (which must have been issued before the due date for filing the return, including extensions). If the qualifying child does not have a SSN, the $500 nonrefundable credit for other dependents can be claimed.

To claim the $500 credit for other dependents, each child or dependent must have an Individual Taxpayer Identification Number, Adoption Taxpayer Identification Number, or Social Security number.

Future changes to the Child Tax Credit

As we look into the future after 2025, the CTC benefit will be reduced to $1,000 for each qualifying child and the income threshold amounts for claiming the total credit will be lowered to:

• $110,000 for married taxpayers filing jointly
• $75,000 for an individual filing as single, head of household, or qualifying widow(er)
• $55,000 for a married individual filing a separate return