Child Tax Credit: What It Is, Requirements & How to Claim

I found a couple of articles from SmartAsset and NerdWallet on Child Tax Credits for the 2022 tax season. This year there are some substantial changes compared to last year’s credits. Enjoy the articles and I will be happy to discuss the pros and cons for you when we review your 2022 Tax Returns with you this season.

Bob Donica

Source: NerdWallet | Repost RE Donica & Associates 1/25/2023 – 

The child tax credit is a federal tax benefit that plays an important role in providing financial support for American taxpayers with children. People with kids under the age of 17 may be eligible to claim a tax credit of up to $2,000 per qualifying dependent when they file their 2022 tax returns in 2023. $1,500 of that credit may be refundable

We’ll cover who qualifies, how to claim it and how much you might receive per child.

What is the child tax credit?

The child tax credit, commonly referred to as the CTC, is a tax credit available to taxpayers with dependent children under the age of 17. In order to claim the credit when you file your taxes, you have to prove to the IRS that you and your child meet specific criteria.

You’ll also need to show that your income falls beneath a certain threshold because the credit phases out in increments after a certain limit is hit. If your modified adjusted gross income exceeds the ceiling, the credit amount you get may be smaller, or you may be deemed ineligible altogether.

Read the full article…

Read the Second Article…

Share:

More Posts

The Benefits of Having a Roth IRA As Part of Your Portfolio

The Roth IRA (Individual Retirement Account) is one of the most powerful investment accounts you can have to help maximize your retirement savings with its unique tax advantages and flexibility. Despite its considerable benefits, it remains underutilized by many who could benefit from its features. Here is a quick breakdown of the rules around the

Understanding IRMAA and Social Security for High-Income Retirees

Understanding how your income affects your Social Security benefits and Medicare premiums is crucial as you approach or navigate through retirement. For high-income retirees, two critical factors come into play: the Income-Related Monthly Adjustment Amount (IRMAA) and the potential taxation of Social Security benefits. Both elements can significantly impact your retirement budget, making strategic planning

Capital Gains Tax: How It Works, Rates and Calculator

(317) 912-2100 [email protected] Mon – Sat: 10:00 AM – 6:00 PM 10763 Allisonville Rd Fishers, IN 46038 Capital gains tax is a crucial consideration for investors, levied on the profit from the sale of assets like stocks or real estate. The tax rate varies based on the asset’s holding period and the taxpayer’s income level,

The Ultimate Guide to Filling Out Your W-4 for Maximum Tax Benefit

Navigating the complexities of tax forms can be a daunting task for many taxpayers in the United States. However, understanding how to properly fill out a W-4 form can significantly impact your financial health, ensuring you maximize your take-home pay while minimizing your tax liabilities. This guide is designed to help the everyday taxpayer get

Send Us A Message

Scroll to Top