Child tax credit changes parents will see

Big changes to filing your taxes this year (2023).
Published: Jan. 25, 2023 at 9:49 PM CST
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SHREVEPORT, La. (KSLA) - In 2021, those eligible for the child tax credit saw an increase from $2,000 to $3,600 per child 5-years-old and younger, and A$3,000 per child ages 6 to 17, but parents will see a decrease in those amounts in 2023.

Jennifer Delcomyn, a financial advisor with Evans Financial Group, highlights that the 2021 child tax credit helped a lot during the pandemic. As the enhancements that helped people make ends meet are taken away, Delcomyn feels that some will struggle.

“Kids still have to eat, and they still have to go to daycare, and you still have to provide for your child. Any additional income coming in is helpful. To lose that, it’s gonna hurt some,” said Delcomyn.

One thing worth noting for this tax season is that people filing single with a $200,000 income or a $400,000 income with joint filing will not be eligible to receive any child tax credit.

Delcomyn says that the change in child credit taxes, while very subjective, could be taking more out of your pockets this year around.

“They possibly could more. Of course, it all comes down to what your tax bracket is, what your income is, and if you have deductions. It can definitely impact whether you are paying in or not,” she said.

Delcomyn says that it’s easy to overlook your dependent’s eligibility, which could cause oversight in your financial planning.

She encourages everyone to check their dependents’ statuses before filing taxes this year.