Child Tax Credit 2022

One of the top questions I get daily is, where did my child tax credit go? That’s a really great question. There have been some really big changes for Child tax credit tax year 2022. Why? In short, the last congress of 2022 didn’t extend the COVID tax relief packages – sadly, they have expired. Below are the details, please take a look. 

Specifically for the Child Tax Credit here are the changes.

• • It is nonrefundable – meaning it has the ability to take your taxes owed down to 0, but it no longer increases your tax refund.

• • It has been reduced from $3600 under 6 years/$3000 6-17 years to $2000 per child under 17years of age.

The Additional Child Tax Credit has also undergone some changes as well.

• • It is still refundable. Meaning it will increase your tax return.

• • It has increased from a maximum of $1400 per child to a maximum of $1500 per child.

• • This credit is based on earned taxable income over $2500. If you do not have earned income (for instance, S Corp income, Social Security benefits, pensions, State disability payments, unemployment benefits, interest income, dividends and cash from friends and relatives are not considered earned income), you will not qualify for this credit.

Here is how to calculate the credit:

Additional Child Tax Credit = Earned Taxable Income – $2500 x .15

 If you have further questions or comments, please post below.

If you are upset by these changes to this credit, contact your congressmen. 

You can find more information about this topic here.