IRS Warns Against Missing Out on Child Tax Credits

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Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property insurance market, local and national politics. She has previously extensively covered U.S. and European politics. Giulia joined Newsweek in 2022 from CGTN Europe and had previously worked at the European Central Bank. She is a graduate in Broadcast Journalism from Nottingham Trent University and holds a Bachelor's degree in Politics and International Relations from Università degli Studi di Cagliari, Italy. She speaks English, Italian, and a little French and Spanish. You can get in touch with Giulia by emailing: g.carbonaro@newsweek.com.

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The Internal Revenue Service (IRS) has warned against taxpayers potentially missing out on certain tax-credit refunds when filing their taxes this year, including the Child Tax Credit and the Child and Dependent Care Credit.

The federal agency is urging low- to moderate-income families, especially those who don't normally file a tax return, to use IRS Free File—its tool so you can do your taxes online for free—to prepare tax returns. The IRS adds that such families should not miss out on what it calls "overlooked refunds and tax credits."

Read more: The Child Tax Credit: Who Qualifies and How to Claim It

Taxpayers with an adjusted gross income of $79,000 or less in 2023 are able to use IRS Free File to process and submit a simple tax return free of charge. This is filed electronically, and taxpayers are then paid any refund by direct deposit. The online program can also be used to ask for an extension on the tax-filing deadline.

This year's tax-filing season, which began on January 29, is now well underway, and most people would have filed their taxes with the IRS by now. The official deadline for filing a tax return or to request an extension, in most cases, is Monday, April 15—in just about four days. Taxpayers in Maine and Massachusetts have a due date of April 17, while those who have requested an extension have until October 15.

Those who don't file a tax return are unable to get any refund. That's why the IRS is urging households who are normally not required to file their taxes to file them anyway.

Read more: Compare Tax Software Programs

Taxpayers with a gross income of less than $13,850 for single filers and $27,700 for married filing jointly are not required to file a federal tax return, but by not doing so, they are missing out on the chance of having a refund.

"Low-income individuals may mistakenly assume that, since they owe no tax, they're not entitled to a refund. In fact, they may get money back if they file a tax return," the IRS wrote in a recent press release.

The agency encourages low- to moderate-income workers and working families who don't normally file a return to do so. The IRS is also urging people experiencing homelessness, students just entering the workforce or who may have only worked part-time and all eligible parents of qualifying children born or welcome through adoption or foster care in 2023. These last taxpayers may be eligible for the Child Tax Credit.

The Child Tax Credit, enacted in 1997, helps families with qualifying children get a tax break, according to the IRS. It currently provides a benefit of up to $2,000 per child to those with dependent children under the age of 17. The White House says that some 40 million families receive the Child Tax Credit every year.

Homeless people can use the address of a friend, relative or trusted service provider, such as a shelter, on their tax return.

Children school
Students write at desks in a classroom at elementary school. The IRS warned that many taxpayers might be missing out on tax child credit. Getty Images
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About the writer

Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property insurance market, local and national politics. She has previously extensively covered U.S. and European politics. Giulia joined Newsweek in 2022 from CGTN Europe and had previously worked at the European Central Bank. She is a graduate in Broadcast Journalism from Nottingham Trent University and holds a Bachelor's degree in Politics and International Relations from Università degli Studi di Cagliari, Italy. She speaks English, Italian, and a little French and Spanish. You can get in touch with Giulia by emailing: g.carbonaro@newsweek.com.

Writers Page

Giulia Carbonaro is a Newsweek reporter based in London, U.K. Her focus is on the U.S. economy, housing market, property ... Read more