Born this July 2023? You will claim her on your 2023 tax return you file next April. You can claim a baby for the year even if they were born on Dec 31. If she was born in July 2022 you start claiming her on your 2022 return. The only paperwork to fill out would be to give your employer a new W4 form for your pay deductions.
Your child can be claimed as a dependent for the tax year in which they were born even if they were born on December 31. Are you the custodial parent? Do you have income from working to enter on a tax return?
IRS interview to help determine who can be claimed:
The 2021 child-related credits were very generous. Lots of people are being taken by surprise this year when they find out the credits for 2022 are lower than they were last year.
The tax laws changed for child-related credits and are much less generous for 2022.
Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number. Careful— do not say that your child’s SSN is not valid for employment. If your child was born in 2022 make sure you said he lived with you the whole year. There is an oddly worded question that asks if the child paid over half their own support. Say NO to that question.
Have you entered income from working in 2022? If not, you will not receive an income tax refund based on having dependent children.
The rules for getting the child tax credit on a 2021 tax return and now on a 2022 return are very different. For 2021 you could get $3600 for a child under 6 or $3000 for a child between 6 and 17 even if you had no income/did not work. That is NOT the way it will work for your 2022 tax return. The “old” rules are back.
The maximum amount of the child tax credit is now $2000 per child; the refundable “additional child tax credit” amount is $1500. In order to get that credit, you have to have income from working. The credit is calculated based on the amount you earned above $2500 multiplied by 15%, up to the full $1500 per child. If the amount you earned was too low, you will not get the full $1500.
If your child is older than 16 at the end of 2022, you do not get the CTC. But you may still get the non-refundable $500 credit for other dependents instead.
And for the Earned Income Credit—-the rules are back to the “old” rules—
Those under 25 and over 65 without children are not eligible as they were uniquely in 2021. And you cannot use your income from any earlier tax year to get the EIC for a 2022 return. There is no “lookback” for 2022. EIC for 2022 will be based on the income you earned by working in 2022.
Look at your 2022 Form 1040 to see the child-related credits you received
Child Tax Credit line 19
Credit for Other Dependents line 19
Earned Income Credit line 27
Additional Child Tax Credit line 28
AND….If you have children but had little or no income, it raises the question of how you and the children were supported. There may be another tax-paying adult who can claim you and/or the children as dependents.
Enter your dependents in My Info with their Social Security numbers, and let the software calculate your child tax credit and/or earned income credit. The software will use the 2022 rules.
@jasminesparza If you mean your child was born in July of 2023, then you will claim your child on your 2023 tax return. People will prepare and file 2023 tax returns next year in 2024, when tax year 2023 is over.
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