Definition of the Child Tax Credit: How It Operates and How to Apply for It
The Child Tax Credit: What is it?
American taxpayers who have children under the age of 17 at the end of the year are eligible for the Child Tax Credit, a tax benefit. The credit is $2,000 for each eligible kid for the 2023 tax year (the tax return submitted in 2024).
If you make up to $200,000 as an individual filer or $400,000 as a joint filer, you are eligible for the entire amount for each kid. For parents with greater salaries, the benefit is tapered away.
After two years during which emergency legislation relating to the COVID-19 epidemic increased the payment to as high as $3,000 per kid and $3,600 for children under the age of six, this benefit has returned to its pre-2021 levels.
The Operation of the Child Tax Credit
On a dollar-for-dollar basis, the Child Tax Cre...