This tax season might look at little different for some filers, but especially those who qualify for the child tax credit.
While last year saw returns rise due to the coronavirus pandemic, another change is in store for this year.
Tax filing season is officially underway, with both the Illinois Department of Revenue and the Internal Revenue Service accepting income tax returns starting last week.
But for many parents, this one credit could make a huge difference in your return.
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Here's a look at how to find out if you're eligible and for how much:
Who is eligible for a child tax credit?
The child tax credit is based on a number of eligibility factors involving a filer's claimed dependents and annual income.
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Those who have a qualifying child and an annual income of less than $200,000 individually or $400,000 if filing jointly, will be eligible for the full credit amount for each eligible child.
Those with higher incomes could still be eligible for a partial credit, however.
So how do you know if your child qualifies?
According to the IRS, in order for filers to qualify for this credit for the 2022 tax year, their dependent must:
- Be under age 17at the end of the year
- Be the filer's son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
- Provide no more than half of their own financial support during the year
- Have lived with the filer for more than half the year
- Be properly claimed as your dependent on the filer's tax return
- Not file a joint return with their spouse for the tax yearorfile it only to claim a refund of withheld income tax or estimated tax paid
- Have been a U.S. citizen, U.S. national or U.S. resident alien
If you're still unsure, you can check here.
How much is the credit for?
Amounts for the Child Tax Credit and Dependent Care Credit change yearly, with both seeing changes this year.
The federal government rolled out several tax benefits to help families struggling during the coronavirus pandemic last year, but now, those pandemic benefits have expired.
“A lot of the things like the child credits and the child care credits are back down to where they were before the pandemic,” Judy Strauss, an enrolled agent who runs Strauss Tax Services in downtown Chicago, told NBC 5.
Financial and tax experts said families filing these claims could see a smaller refund compared to previous years.
"The child care tax credit, that’s No. 1 on the list during the pandemic in 2021," said Dan Rahill, managing director at Wintrust Wealth Management. "That increased to $3,600 for children under 6 and $3,000 for other children under 17. Now that reverts back to pre-pandemic rules, and it’s only going to be $2,000 for per child this year."
How do I claim the child tax credit?
You can claim the Child Tax Credit by entering your children and other dependents onForm 1040, U.S. Individual Income Tax Return, and attaching a completedSchedule 8812, Credits for Qualifying Children and Other Dependents.
What else should I know before filing my taxes?
For those who file for the child tax credit, the IRS notes they may also be eligible for other tax credits include:
- Child and Dependent Care Credit
- Earned Income Tax Credit
- Adoption Credit and Adoption Assistance Programs
- Education credits
"You may qualify for theCredit for Other Dependentsfor a child or dependent who is not a "qualifying child" for purposes of the Child Tax Credit," the IRS reports.
The IRS expects more than 168 million individual returns will be filed this tax season.
While tax season is often overwhelming for many, the Illinois Certified Public Accountant Society, or CPA Society, has offered a couple of tips for taxpayers to help simplify and speed up the process of filing their taxes.
- Gather all your information prior to filing
Before starting your tax return, the Illinois CPA Society advises taxpayers to gather all necessary information ahead of time, including 2022 tax records as well as Social Security numbers, Individual Taxpayer Identification Numbers, and Adoption Taxpayer Identification Numbers.
For those that are previously confirmed victims of tax-related identity theft should also have their IRS-issued Identity Protection Personal Identification Numbers ready. Taxpayers who have proactively requested one should also have their number on hand before filing.
The Illinois CPA Society notes that for some taxpayers, this may mean waiting until mid-February to early March to ensure that all income and tax-related documents have been received.
These include 1099 forms from banks and other payers reporting unemployment compensation, dividends, pension, annuity, or retirement plan distributions, investment income and other earned income.
- File electronically and use direct deposit
According to the Illinois CPA Society, both filing electronically and using direct deposit are important steps to ensure that both your tax return and refund payment are processed with minimal delays.
The IRS has advised taxpayers to avoid filing paper returns whenever possible, adding that filing electronically is the fastest, easiest, and safest way to file a tax return.
“Taxpayers are encouraged to file electronically as early as possible in the tax season and choose direct deposit in order to ensure the fastest processing and issuance of any refunds,” IDOR Director David Harris said in a statement. “I encourage taxpayers to try My Tax Illinois, our free online account management program that has been recently updated and allows taxpayers to file their individual income taxes electronically. Electronic filing is also available through third-party software or with most tax preparers.”
Can I file for an extension on my taxes?
While the deadline for most taxpayers to file their returns is April 18, taxpayers who request an extension will have until Oct. 16 to file.
If taxes are owed, however, any remaining taxes must be paid by April 18.
When will I receive my refund?
According to the IRS, taxpayers who file electronically and use direct deposit should receive their refund payments within 21 business days, as long as there are no issues with the return.
Taxpayers who are receiving refunds that include the Earned Income Tax Credit or Additional Child Tax Credit cannot be issued their refunds before mid-February due to the Protecting Americans From Tax Hikes Act of 2015, which provides additional time for the IRS to ensure fraudulent refunds are not issued.
For those in Illinois, the IDOR offers a Where's My Refund? page for residents to check on the status of their refund.
What else has changed?
"Refunds may be smaller in 2023," the IRS said in aNovember release. "Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022. In addition, taxpayers who don’t itemize and take the standard deduction, won’t be able to deduct their charitable contributions."
IRS leadership says taxpayers should expect a smoother filing season this year.
“We’ve trained thousands of new employees to answer phones and help people. While much work remains after several difficult years, we expect people to experience improvements this tax season,” said Acting IRS Commissioner Doug O’Donnell.
The IRS has most recently added 5,000 new customer service representatives who were trained in taxpayer rights and technical account management issues and is chipping away at the hundreds of thousands of unprocessed returns from last tax season.
Who qualifies for $2000 Child Tax Credit? ›
These people qualify for at least $2,000 of Child Tax Credit, which comes out to $166 per child each month: Married couples with income under $400,000. Families with a single parent (also called Head of Household) with income under $200,000. Everyone else with income under $200,000.How does the $2000 Child Tax Credit work? ›
Depending on your income and family size, the CTC is worth up to $2,000 per qualifying child. Up to $1,500 is refundable. CTC amounts start to phase-out when you make $200,000 (head of household) or $400,000 (married couples). Each $1,000 of income above the phase-out level reduces your CTC amount by $50.Is the Child Tax Credit $2000? ›
For tax year 2021, the Child Tax Credit increased from $2,000 per qualifying child to: $3,600 for children ages 5 and under at the end of 2021; and. $3,000 for children ages 6 through 17 at the end of 2021.How do I know if I qualify for Child Tax Credit 2022? ›
To be a qualifying child for the 2022 tax year, your dependent generally must: Be under age 17 at the end of the year. Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew ...How much do you get back for a child on taxes 2022? ›
Similarly, for each child age 6 to 16, it's increased from $2,000 to $3,000. It also provides the $3,000 credit for 17-year-olds.Who qualifies for Child Tax Credit 2023? ›
As a parent or guardian, you are eligible for the Child Tax Credit if your adjusted gross income is less than $200,000 when filing individually or less than $400,000 if you're filing a joint return with a spouse.How much will I get back if I claimed the Child Tax Credit? ›
For tax returns filed in 2023, the child tax credit is worth up to $2,000 per qualifying dependent under the age of 17. The credit is partially refundable. Some taxpayers may be eligible for a refund of up to $1,500.Will the Child Tax Credit affect 2022 taxes? ›
Those who got $3,600 per dependent in 2021 for the CTC will, if eligible, get $2,000 for the 2022 tax year. For the EITC, eligible taxpayers with no children who received roughly $1,500 in 2021 will now get $500 in 2022.Is the Child Tax Credit included in your tax refund? ›
No. Advance Child Tax Credit payments are not income and will not be reported as income on your 2021 tax return.What is $8000 Child Tax Credit? ›
How Much Can You Expect from the Child and Dependent Care Credit? The credit is based on your income and a percentage of the care expenses you paid in 2021. This year, you can claim up to $8,000 paid in care expenses for one qualifying dependent, or up to $16,000 for two or more.
Is the Child Tax Credit 2000 or 3000? ›
The maximum credit amount increased from $2,000 to $3,600 per child under age 6 and to $3,000 per child aged 6-17 (including 17-year-olds for the first time).How to find out how much advance Child Tax Credit i received? ›
2021 Tax Filing Information
Get your advance payments total and number of qualifying children in your online account and in the Letter 6419 we mailed you. You can use your username and password for the Child Tax Credit Update Portal to sign in to your online account.
For 2022, the child tax credit is $2,000 per kid under the age of 17 claimed as a dependent on your return.Can I get Child Tax Credit with no income 2022? ›
Do I need to have income to be eligible for the Child Tax Credit? (added January 31, 2022) A10. No. You do not need income to be eligible for the Child Tax Credit if your main home is in the United States for more than half the year.What is the stimulus Child Tax Credit for 2022? ›
Taxpayer income requirements to claim the 2022 Child Tax Credit. Parents of eligible children must have an adjusted gross income (AGI) of less than $200,000 for single filers and $400,000 for married filing jointly to claim the full credit.Will SSI recipients get the Child Tax Credit 2023? ›
Am I eligible for the CTC if I get Social Security or SSI? Yes, if you meet the qualifying rules of the CTC. You can claim this credit from the Internal Revenue Service (IRS) based on each of your qualifying children, even if you get Social Security or SSI and don't normally file a tax return.Will the Child Tax Credit affect 2023 taxes? ›
Unfortunately, the CTC awarded per child will not be increased in 2023 meaning that the maximum amount one can claim per qualifying child is 2,000 dollars with up to 1,540 dollars being refundable.Will I get a bigger tax refund in 2023? ›
“Refunds may be smaller in 2023,” the IRS said in a November news release. “Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no economic impact payments for 2022.”Will there be more advance child tax credit in 2022? ›
Unless lawmakers pass extensions to the CTC expansions, there will not be any more monthly CTC payments. Despite the benefits that the CTC expansions have had for families across the country, Congress has not extended the expansions beyond 2021.Is the IRS sending money in 2022? ›
Refunds may be smaller in 2023. Taxpayers will not receive an additional stimulus payment with a 2023 tax refund because there were no Economic Impact Payments for 2022. In addition, taxpayers who don't itemize and take the standard deduction, won't be able to deduct their charitable contributions.
What is the $4000 Child Tax Credit? ›
For 2021, the American Rescue Plan Act of 2021, enacted March 11, 2021, made the credit substantially more generous (up to $4,000 for one qualifying person and $8,000 for two or more qualifying persons) and potentially refundable, so you might not have to owe taxes to claim the credit (so long as you meet the other ...How do I qualify for the 5000 Child Tax Credit? ›
The IRS says if you welcomed a new family member in 2021, you could be eligible for an extra $5,000 in your refund. This is for people who had a baby, adopted a child, or became a legal guardian. But you must meet these criteria:You didn't receive the advanced Child Tax Credit payments for that child in 2021.Are we getting 8k per child? ›
The most parents can receive from the tax credit is $8,000, which applies to families with two or more children. The expanded tax break lets families claim a credit worth 50% of their child care expenses, which can be up to $16,000 for two or more kids.Are we getting a stimulus check in July 2022? ›
As of July 2022, the federal government doesn't appear to have any plans to send a fourth stimulus check to all U.S. residents.How can I get a bigger tax refund with no dependents? ›
Get a bigger refund by adding a $300 charitable contribution to your taxes, even if you take the standard deduction. GREENSBORO, N.C. — There are three things to know about this year's tax season that can affect your return: charitable giving expansion, claiming all of the child tax credit, and the NC refund timeline.How much is a dependent worth on taxes 2022? ›
For tax year 2022, the Child Tax Credit is up to $2,000. The Credit for Other Dependents is worth up to $500.Who is eligible for the advance Child Tax Credit payments? ›
Nearly all families with children qualify. Families will get the full amount of the Child Tax Credit if they make less than $150,000 (two parents) or $112,500 (single parent). There is no minimum income, so families who had little or no income in the past two years and have not filed taxes are eligible.What families are eligible for the Child Tax Credit? ›
To be eligible for this benefit program, the child you are claiming the credit for must be under the age of 17. A qualifying child must be a son, daughter, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew).Who is entitled to Child Tax Credit? ›
The child you're responsible for will need to be either under 16 or between 16 and 20 and in full-time approved education or training. A 16-year old who's not in approved education or training is considered a young person until the 31 August after they turn 16 unless: they work 24 or more hours a week.What is the qualifying income for Child Tax Credit? ›
These people are eligible for the full 2021 Child Tax Credit for each qualifying child: Married couples filing a joint return with income of $150,000 or less. Families with a single parent (also called Head of Household) with income of $112,500 or less. Everyone else with income of $75,000 or less.
How does Child Tax Credit work 2022? ›
The child tax credit has now reverted in 2022 back to its original limit of $2,000 for every dependent under age 16. Income thresholds for single taxpayers and heads of household are set at $200,000 to qualify (and $400,000 for joint filers).