The Child Tax Credit was born in 1997 when the federal government introduced the Taxpayer Relief Act.
The Child Tax Credit program provides financial support to taxpayers with children.
According to the information released, in 2022, the Child Tax Credit will grant $2,000 for every qualifying dependent.
The Sun describes there’s no limit on the number of kids families can claim. Nevertheless, you need to follow specific criteria to claim credit.
The 2022 Child Tax Credit:
According to Northwestern Mutual, during 2022, the CTC amount decreased from last year.
Families claimed a $3,000 child tax credit for kids from ages 6 to 17.
Meanwhile, every dependent under 6 years old got $3,600 from the federal government.
Now, for every kid who is 16 or younger, families will get $2,000.
In 2021, the credit was 100% refundable. For the 2022 CTC, families will get back only $1,500.
How to qualify for the 2022 Child Tax credit?
The IRS describes, for obtaining the 2022 round of the child tax credit:
-The individual is the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew).
-The individual lived with the taxpayer for more than one-half of the tax year 2021.
-The individual is properly claimed as the taxpayer’s dependent.
-The individual was a U.S. citizen, U.S. national, or U.S. resident alien.
-The individual did not provide more than one-half of his or her support during 2021.
-Your qualifying child has a Social Security number that is valid for employment
Income limits for the 2022 Child Tax Credit:
-Single filers: Adjusted Gross income of $200,000 or under the limit.
-Joint filers: Adjusted Gross income of $400,000 or under the limit.
According to Tax Policy Center, If the taxpayer exceeds the maximum threshold, the credit decreases by 5% over the above limits.