Now that January has concluded, we should have all of the necessary federal and state income tax forms.
The Child Tax Credit, which is claimed by tens of millions of Americans annually, is one of the largest changes to our federal taxes in 2022.
Who Is Qualified To Receive Child Tax Credit This Year?
This tax season may differ slightly for some filers, particularly those who qualify for the child tax credit. While last year’s returns increased due to the coronavirus pandemic, this year will see another change.
Both state governments and the Internal Revenue Service began accepting income tax returns last week, marking the beginning of tax season. However, this credit could make a substantial difference for many parents.
The child tax credit is determined by a variety of eligibility factors involving a filer’s claimed dependents and yearly income.
Those with a qualifying child and an annual income of less than $200,000 (individually) or $400,000 (jointly) are eligible for the maximum credit amount for each qualifying child.
Those with higher incomes may still qualify for a partial tax credit.
According to the IRS, for filers to qualify for this credit for the 2022 tax year, their dependent must meet the following requirements:
- Be younger than 17 at the year’s end
- Be the filer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or descendant of any of these individuals (for example, a grandchild, niece, or nephew)
- Offer no more than fifty percent of their own fins
- Have lived with the filer for over fifty percent of the year
- Have spent over fifty percent of the year with the filer
- Not file a joint tax return with their spouse for the year or file it solely to claim a refund.
- Have been a citizen, national, or resident alien of the United States.
You must file a tax return in order to receive a Child Tax Credit refund. You must file Schedule 8812 to determine the credit amount.
Read more: ONE: EV battery manufacturer gains close to $300 Million in global market share
Additional Tax Credits For Eligible Families
Families that are eligible for the Child Tax Credit may also be eligible for the Child and Dependent Care Credit, Earned Income Tax Credit, Adoption Credit, or Education credit.
The IRS requests that, if possible, tax returns be filed electronically rather than by mail. There are public computers available for use in the library. Use your library card number to log in. If you provide a valid photo ID and are not a library patron, you may use a guest pass. Printing from the computer costs 25 cents per page.
On request, the library will print blank tax forms for patrons at no cost. This does not include tax instruction booklets; only blank tax forms are included.
The IRS typically promises refunds within 21 days following the submission of electronic tax returns. This would be the case for individuals who file their tax returns online, make no mistakes, and request that their refund be deposited directly into their bank account.
Read more: Mortgage interest rates decline prompting 5% surge in refinancing applications