Child Credit: Requirements and Possible Changes Due to Federal Law

Amidst the hustle and bustle of tax season, a measure still lingering in Congress could increase the child credit.

The Internal Revenue Service (IRS) establishes that the child credit is a tax benefit that you can claim as long as you are the parent. This benefit applies to and can be claimed by residents of Puerto Rico.

Requirements to qualify for this credit include:

• That your child is below 17 years of age at the end of the year
• Provide a maximum of half of your own financial support during the year
• That the minor has been living with you for half a year
• Properly claim your dependents on your tax return
• The US Be a citizen or national citizen or a resident alien of the United States
• among others

Last Wednesday, the federal House of Representatives approved a measure that would increase this benefit. The legislative portion establishes a change to the credit that will go from $1,600 to $1,800 in tax year 2023.

Tax year 2024 also includes an increase that increases the credit to $1,900 and $2,000 in tax year 2025.

The measure moves to the Senate, where it needs 60 votes to pass. At the moment, it is unknown when he will attend or if he will have the votes for approval.