For 2022 tax returns, the Child Tax Credit will return to its original form and that includes changes to the accepted age for eligibility
The Child Tax Credit (CTC) is a tax benefit that favors families with dependent minors in their homes. It is accessible for people who file a tax return , but also for those who are not required , due to their low income. To make the claim, it is enough that you have a Social Security number, or your ITIN, which is your Personal Taxpayer Identity Number.
In order for the Internal Revenue Service (IRS) to accept a child as a dependent, the child must be under 18 years of age and meet the following specifications.
-Must be your child, stepchild, eligible foster child, sibling, step-sibling, half-sibling, or a descendant of one of these (for example, a( a) grandchild or nephew.
-You must provide a maximum of half of your own financial support during the year in which you are claiming them as a dependent.
-The child must have lived with you for more than half of the year in which you are claiming them as a dependent
-You must claim him as a dependent on your tax return
-You must be a US citizen and/or US resident.
For 2021, the Child Tax Credit was exceptional, since through the American Rescue Plan it was approved that it will increase its amounts, in addition to making it refundable and that the income limit be higher, to help more families become CTC eligible.
For married couples, the income limit is $150,000 if filing jointly or filing as a qualifying widow. $ 112,500 if filing as head of household and $75,000 if you are single or married filing separately.
However, now that the American Rescue Plan has ended and the CTC is returning to its original form, many families will no longer be eligible for it. That is, according to the policies of the American Rescue Plan, families with a child under the age of 17 were eligible for the full child tax credit. By 2023, 18 years old was the established age limit for CTC eligibility.
But as of 2022, the changes will continue, since the Child Tax Credit payments will only be a reality for those who have children under 16 years of age. If a minor is 17 or will turn 17 before the end of the year, they are no longer eligible to receive a CTC payment.
If you want to know more about this tax credit, go directly to this official IRS link.