What is the amount of the dependent deduction in 2023?

[mvonwergers]

We used to multiple the number of dependents by $3000 and deducted that amount from income. In 2023 do we multiply the # of dependents by $1000?

[xmasbaby0]

There are no personal exemptions for dependents on your federal return.  Personal exemptions were eliminated after 2017 for federal returns.   Are you asking about something on a state return?

And...you are not preparing a 2023 return.  You are preparing a 2022 return for the tax year that ended on December 31, 2022.

[xmasbaby0]

Or---are you trying to prepare a new W-4 for 2023?

https://www.irs.gov/individuals/tax-withholding-estimator

https://www.irs.gov/pub/irs-pdf/fw4.pdf

[VolvoGirl]

Just let Turbo Tax figure it out.  The rules changed again back to before the pandemic.  

The Child Tax Credit in 2022 is not a refundable credit, so you can only use it to the extent you owed tax.  The Additional Child Tax Credit is a refundable credit (one you can get even if you don't owe taxes) but the amount of the credit that is potentially refundable is calculated by taking 15% of your earned income above $2,500. You get to claim the lesser of this calculated amount or your unused Child Tax Credit amount, up to $1,400 per qualifying child.       Here is an article that will explain in more detail. 

[xmasbaby0]

Oh----did you mean the child tax credit?

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 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.

https://ttlc.intuit.com/questions/1900923-what-is-the-child-tax-credit

https://www.irs.gov/help/ita/does-my-childdependent-qualify-for-the-child-tax-credit-or-the-credit-f...

Look at your 2022 Form 1040 to see the child-related credits you received

PREVIEW 1040

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Child Tax Credit line 19

Credit for Other Dependents line 19

Earned Income Credit line 27

Additional Child Tax Credit line 28