16 Income Tax Changes Coming in 2023

A less valuable child tax credit

The American Rescue Plan Act also decided that the child tax credit should have more value in 2021, and this can be seen in a couple of ways, such as:

• the increased value of the maximum value of the credit from $2,000 to $3,600 for children who are 5 years or older and $3,000 for children who are between 6 and 17 years old
• the increased value of the maximum qualifying age. Now it is until 17, as before children had to be 16 or younger so they could qualify.

Just as with the earned income tax credit, these changes to the child tax credit are now temporary. It’s safe to assume that most parents will receive a smaller child tax credit for 2022.