Child Tax Credit Payment Schedule 2022 : $2,000 Child Tax Credit 2022 Payment Schedule
The American Rescue Plan’s expansion of the Child Tax Credit will be phased off in 2022. Tax Cuts and Jobs Act regulations have resulted in lower credit amounts and more stringent eligibility standards this year than they had last year (TCJA). If no action is taken by Congress to amend the credit before then, these adjustments will remain in place until the 2025 fiscal year.
Instead of receiving monthly instalments on the credit as they did from July to December in 2021, recipients will instead receive a single tax credit that will either reduce or increase their tax bill or refund. This is a huge shift that benefitted many families last year.
Who Qualifies?
Parents having children under the age of 17 at the end of the year, 31 December 2022, who meet certain eligibility standards, are eligible for the 2022 Child Tax Credit. It was made possible for 17-year-olds to receive the full 2021 Child Tax Credit under the enhanced credit.
For the tax years 2022-2025, the child must be qualified to be claimed as a dependant on the taxpayer’s return and reside at the same address as the taxpayer for at least half of the year in order to be claimed as a dependent. Tax year, the youngster can’t contribute more than half of their own expenses.
Taxpayer identification numbers for children under the age of 18 must be in the form of a work-approved Social Security number (SSN). Prior to the TCJA, taxpayers could deduct the Social Security benefits of children who were granted an ITIN by the Internal Revenue Service (IRS) rather than the Social Security Administration.
Also Read : Child Tax Credit for Pregnant Moms 2023
Am I Eligible?
In order to claim the entire credit, the AGI of the parents of eligible children must be less than $200,000 for single filers and $400,000 for married couples filing jointly. The credit is decreased by $50 for every $1,000 or part thereof that exceeds these limits.
The refundable element of the credit is only available to lower-income earners earning less than $2,500 per year. As a result, just a percentage of a worker’s salary can be claimed. After deducting $2,500 from your “earned income,” which excludes things like Social Security and unemployment benefits, you may figure up how much you’re entitled to, and then multiplying that number by 15%.
