How To Add A Newborn To Child Tax Credit

The child tax credit is a perk that you can add to your taxes when you file in April. The idea of this credit is that it is the government’s way of doing its part to help make raising your kids easier by giving you a break at the end of the year. As of the writing of this article, qualifying Americans are still able to take advantage of the tax credit for all qualified children. In this article, we will talk a bit more about this great perk and how to add a newborn to the child tax credit.

Key Points

• As of 2023, the CTC is $2,000 for each child in your home that is 16 years old or younger. There is a maximum of $6,000 per household for this credit.
• Schedule 8812 is specifically designated for this credit; this is where you should add your newborn.
• You will need to provide proof that you have a newborn residing with you in order to receive this credit.

The Ins and Outs of the Child Tax Credit

Before we discuss how to add a newborn to the child tax credit, let's go over a brief summary of what you need to qualify for the credit and how much you can put on your taxes.

Currently, when you file in 2023 (for your 2022 taxes), you can add your child to the section that allows you to get a tax credit. According to the White House, the tax credit is still available as of this year. However, keep in mind that every year is different. As laws change, this credit may be modified or may not be available at all.

At this moment, the child credit is at $2,000 for each child in your home that is 16 years of age or younger. Depending on the rules of the time, there may be a maximum per household of $6,000. In order to qualify, your household must meet the following requirements:

• A family that files taxes jointly and has two incomes must make $400,000 or less to qualify.

• A family with a single-parent income must make less than $200,000.

• At a minimum, the family must have made at least $2,500 in the year.

• The parent(s) must have a valid social security or taxpayer identification number.

• Your child must be born into your family, be adopted, or be a foster child put in your care by a government agency.

• A child must be 16 years old or younger.

• The child must have a valid SSN.

• The child must live with you and must have lived with you for at least six months.

The Steps to Add a Newborn to the Child Tax Credit

While it is not an especially complicated process, you will need to add your newborn to the child tax credit. If you have any questions at all, then consider contacting an accountant or tax professional.

You will add your newborn to the Schedule 8812, which is exclusively designed for the child tax credit. You might also use this form to document if you received any excess child tax credit in the previous year. You can find this along with the Form 1040.

In addition to this form, you will need to show proof of eligibility. To do so, you can provide the newborn’s birth certificate, proof of health insurance for your newborn, your newborn’s childcare records, and your newborn’s social security card. You can find a more comprehensive list of qualifying documents on form 14815.

Remember that you can add a newborn to the child tax credit as long as they were born during the previous year. So, it even counts for those December babies.

If You Received Advance Payments

Some families in the U.S. may have received an early payment as part of the tax credit. If received advanced funds, then you must inform the IRS when you complete your 2023 taxes. 

Keep in mind that the money you received does not count as income. For that reason, if you received more money than what your tax-related circumstances dictate, then you may need to pay some of that money back to the government. 

This generally doesn’t apply to newborns. Usually, this issue arises if your child turns 17 halfway through the year. In this instance, you may owe the government money. Still, if something happens to your newborn partway through the year, it may be worth speaking to a tax professional to see if you'll end up owing the government money.

Again, it is better to be in compliance than to have issues later on.

Other Tips for Parents Filing Taxes

If you are a parent that is filing taxes in 2023, then there are a few other tips that you should consider when submitting your paperwork in April.

Adoption Credit

Parents who adopted a child in 2022 can file for their own tax credit to offset the costs of adoption. Currently, the credit can be as much as $14,890. Keep in mind that your income must be below $263,410 to qualify.

Higher Education Tax Credit

If you have an older child that is attending college, then you may be able to add that to your taxes. There are two programs that might apply: the American Opportunity Tax Credit and the Lifetime Learning Credit. Talk to your tax professional about these opportunities. This credit could help pay for tuition, enrollment fees, and school materials.

Student Loan Interest Deduction

Parents may also be able to deduct interest payments on student loans. By doing so, you will reduce the amount of your taxable income, which means that you will owe fewer taxes. In order to apply, your child must have been enrolled on at least a half-time basis when the loans originated.  

Child and Dependent Care Credit

This credit is designed to help reduce the cost of dependent care services, such as daycare. Children under 13, a spouse or parent who is unable to care for themselves, or any other eligible dependent may be added for this credit. You can receive up to 35% of $3,000 worth of expenses for one dependent, or 35% of $6,000 for two dependents.

Earned Income Credit

Your EIC may change once you have a child. You can get between $560 and $6,935 with this credit, depending on the number of kids you have, your marital status, and how much you make. Given that, becoming a new parent makes re-evaluating this credit worthwhile.

Conclusion

That concludes our lesson on how to add a newborn to the child tax credit. Remember again that the rules can change every year, so it is important to look at the most up-to-date information when calculating taxes. If you have any questions or concerns, we encourage you to speak to a certified tax professional. In the meantime, enjoy this perk of parenthood while it lasts, because it likely won’t go on forever.

The image featured at the top of this post is ©Damir Khabirov/Shutterstock.com.