tthree out of four taxpayers receive a check from the IRS after filing their tax returns.
In 2022, tax experts warn that certain people have a smaller check than normal.
The American rescue plan expanded the child tax credit from $2,000 per child to $3,600 under age 6.
For those between the ages of 6 and 17, there was a total of $3,000 per child.
however, the Child Tax Credit may hit some parents’ tax refunds after filing their tax returns.
According to Money Watch Reporter Aimee PicchiThe CTC was prepaid via monthly checks from July 2021 to December 2021 – and parents will pay the other half of thee tax credit on their tax return before the filing deadline of April 18, 2022. (IRS offices will be closed this year on the traditional April 15 tax deadline for Emancipation Day, pushing the filing deadline to 18 this year).”
Picchi says that, instead of getting a usual $2,000 tax credit, parents will claim $1,500 to $1,800, depending on the age of their children.
Who will get the biggest refund in 2022?
-Parents with a child born in 2021: Tax experts believe that the families who welcomed a child (born, adopted or adopted) in 2021 will receive a larger refund because their parents can claim the full increased CTC credit on their 2021 tax returns.
Working parents with children in childcare:
There is a booster for parents who paid someone to take care of their child while they were working or looking for work.
Previously, those parents claimed up to $3,000 per dependent. Now that credit is a maximum of $8,000 per child with a maximum of $16,000 for two dependents.
The restrictions are clear, the child must be under the age of 13 or a person who is mentally or physically incapable of taking care of themselves, living and dependent on taxpayers for more than half of the year.
In addition, a parent or both parents must have earned some income in 2021 to be able to claim the tax credit.