Child Tax Credit 101

By Michelle Frazier

The Child Tax Credit can reduce the amount of taxes you owe to the IRS. It may even help put money in your pocket! The Child Tax Credit provides a credit of $2,000 per eligible child. An eligible child must meet ALL following conditions:

• Be under 17 years of age
• Be related to you
• Have been a U.S. citizen, U.S. national, or U.S. resident alien
• Have a social security number valid for U.S. employment
• Have lived with you for more than half of the year
• Provided no more than half of their own financial support during the year
• Did not file a joint return with their spouse for the tax year
• Be properly claimed as a dependent on your tax return

Sometimes the IRS asks for proof of these criteria. It is a good idea to keep any paperwork that shows a child meets each of these criteria.

You can claim the Child Tax Credit if you have earned income of at least $2,500. You must list your eligible child(ren) as dependents on your tax return (Form 1040, 1040-SR, or 1040-NR). You must also attach a completed Schedule 8812 (Credits for Qualifying Children and Other Dependents).

The Child Tax Credit is not considered income. It will not affect other benefits you receive like unemployment insurance, Medicaid, Supplemental Nutrition Assistance Program (SNAP), Supplemental Security Income (SSI), Social Security Disability Insurance Program (SSDI), Temporary Assistance for Needy Families (TANF), Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Section 8, or Public Housing.

Be sure to consider whether you might qualify for the Child Tax Credit when you file your 2022 taxes. And, if your household income is low, get free help filing your taxes from a Volunteer Income Tax Assistance program. Call 2-1-1 for locations near you!

This article was published in Legal Aid's newsletter, "The Alert" Volume 38, Issue 3, in December 2022. See full issue at this link: “The Alert”- Volume 38, Issue 3 – Legal Aid Society of Cleveland.