New sets of rules for child tax credit and 2022 tax returns this 2023.
What Are The Latest Changes?
The tax returns will depend on your IRS’s tax filing season. The agency starts accepting individual tax returns for 2022 on January 23, 2023. Moreover, the filing deadline for most individual returns is April 18, 2023, to file your 2022 federal income tax return or request a tax filing extension. Anyone asking for an extension will have until October 16, 2023, to submit their 2022 federal income tax return.
The sooner you complete your federal income tax return, the sooner you’ll receive any tax refund due. However, you have to be keen for tax refund fraud, since the IRS will likely receive their tax return before scammers have a chance to file a fraudulent return in their name. The tax changes were applied for 2022 so get your application forms ready for the 2023 federal income tax refund.
The Modified Child Tax Credit
The American Rescue Plan Act of 2021 has temporarily expanded till 2021. When it was first, implemented, ages 17 and below are entitled to qualify for the credit. Then it boosted the recognition to $3,000 per child those children below 6 can get $3,600. In addition, the distinction was fully refundable for families residing in the US for more than six months during 2021 and removed the $2,500 earnings floor. Lastly, it required half of the credit to be paid in advance by having the IRS send monthly payments to families from July 2021 to December 2021. In 2022 the 2021 child Tax expansion has been adjourned and it reverted to those that were in place for filing 2020 returns and credit is no longer fully refundable.
Furthermore, the child tax credit for 2022 is $2,000 per child under the age of 17 claimed as a dependent on your return. Generally, the child has to be related to you and must live with you for at least six months during the year.
Taxpayers will likely receive a relatively smaller refund compared with the previous tax year. The modifications contain amounts for the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Child and Dependent Care Credit.
- For the EITC, eligible taxpayers with no children who received $1,500 in 2021 will now get $500 in 2022.
- The Child and Dependent Care Credit return will only get $2,100 in 2022 rather than $8,000 in 2021.