Taxes for the 2023 tax year (to be filed in early 2024) look VERY similar to those from last year. So the good news is that you can expect the same credits and benefits this year that you got last year (for the 2022 tax year) as long as your situation hasn't changed drastically.
That said, we know that all the tax changes that were rolled out during the pandemic and in tax year 2021 still have people VERY CONFUSED about what is considered normal or what to expect this year. So, we are going to break it down to help out.
Like 2022 taxes, for this 2023 tax year, 1) There are no stimulus check payments for 2023; 2) The Child Tax Credit remains reduced (capped at $2k) and requires earned income; and 3) The Child and Dependent Care credit remains non-refundable.
No Stimulus Payment for 2023
For 2023 there has been no stimulus payment and there is not an option to claim any stimulus payment on the tax return.
In both 2021 and 2020 the government provided stimulus payments. For those that did not receive the payment directly they were able to request the payment on their tax return. If you had a social security number in either 2020 or 2021 and did not receive the stimulus payments, you can find out how to claim them here: https://www.irs.gov/newsroom/recovery-rebate-credit
The Child Tax Credit remains smaller and requires Earned Income
The 2023 Child Tax Credit will be calculated like it was in 2022. It is worth $2,000 with only $1,600 refundable (able to be returned directly as cash to you). Like last year, you will need to have earned income (money from working) to take advantage of this credit. This means that if you did not work at all during 2023 you will not be able to get the Child Tax Credit.
The Child and Dependent Care Credit remains non-refundable
The last important note is that the Child and Dependent Care Credit remains non-refundable, which means that you will need to owe taxes to actually be able to benefit from it. It is a non-refundable credit, which means it never comes back to you as cash in your refund and instead only decreases the amount of taxes you owe. The tldr here is that if you make very little income, this credit won’t be able to help you this year.
