The Child Tax Credit can be a saving grace for parents. However, recent changes have made the credit hard to understand. Knowing who qualifies for the credit, how to claim it, how much the credit comes out to be, and how it impacts your taxes are all important to know.

                By                    Sam DiSalvo

Find Out: How To Get Rich With a Normal JobSee: 22 Side Gigs That Can Make You Richer Than a Full-Time Job

Who Qualifies for the Child Tax Credit?

  • Under 18
  • Taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew)
  • Does not provide more than one-half of his or her own support during the tax year
  • Lives with the taxpayer for more than one-half of the tax year
  • Claimed as a dependent by the taxpayer
  • Does not file a joint return with a spouse for the tax year 2021 or files it only to claim a refund of withheld income tax or estimated tax paid
  • U.S. citizen, U.S. national, or U.S. resident alien

There’s also an income component. According to the IRS’s website, you qualify for the full amount of the Child Tax Credit if your annual income is not more than:

  • $150,000 if you are married and filing a joint return, or if you are filing as a qualifying widow or widower;
  • $112,500 if you are filing as a head of household; or
  • $75,000 if you are a single filer or are married and filing a separate return.

POLL: Do You Think Student Loan Debt Should Be Forgiven?

How Much is the Full Child Tax Credit?

How Can You Claim the Child Tax Credit?

How Does the Child Tax Credit Impact Your Taxes?

In 2021, when the amount of the Child Tax Credit was higher, it acted as if you got some of your refund ahead of time. So, you might have seen a “reduction” in your refund, but that’s only because you received it prior to filing. Wendy Barlin suggested looking at the 2021 Child Tax Credit as if you received some of your refund early. “Taxpayers are not ‘losing’ any of their refund. It is simply a timing difference. Refunds were, in essence, prepaid,” Barlin said. 

  • 10 Best Cash Advance Apps That Cover You Until PaydayWhat Happens to Social Security When You Die?The 10 Best Balance Transfer Credit Cards for 2023Experts: 4 Safest Places To Keep Your Savings