Hi kaminproject,
Thank you for joining us today, and congratulations on the recent addition to your family.
All parents of children are eligible to claim the Child Tax Credit of up to $2,000 per child for children under the age of 17. This credit starts to phase out when incomes exceed $200,000 for individuals and $400,000 for married couples. This is a semi-refundable credit.
Child care expenses for children under the age of 13 can also qualify for the Child and Dependent Care Credit. This is a maximum credit of $1,050 for one child and $2,100 for two or more children. This is a non-refundable credit, meaning it cannot take your tax liability below $0
Parents of adopted children can also qualify for the Adoption Credit. This is also a non refundable credit, but any unused portions can be carried forward for up to 5 years. This credit is for up to $15,950 in 2023 and $16,810 in 2024 of qualified adoption expenses and can be claimed in the year of adoption. However, the credit starts to phase out if your income exceeds $239,230 and is completely phased out at $279,230. You will need the to have a social security number for the child in order to claim this credit. The credit limit is per child.
You can find more information about the Adoption Tax Credit here.
Edited 8/1/2024 2:30 PM PST
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