2023 Mileage Rates
January 25, 2023
SC Exempts Military Retirement
March 10, 2023
2022 Child Tax Credit Changes
Be aware that all of the 2021 expansions are gone, with the rules reverting back to those that were in place for filing 2020 returns. For 2022, the child tax credit is $2,000 per kid under the age of 17 claimed as a dependent on your return. The child has to be related to you and generally live with you for at least six months during the year. He or she also must be a citizen, national or resident alien of the United States and have a Social Security number. You have to put the child’s name, date of birth and SSN on your tax return, too.
The credit begins to phase out if your 2022 modified adjusted gross income (AGI) exceeds $400,000 on a joint return or $200,000 on a single or head-of-household return. Once you reach the $400,000 or $200,000 modified AGI threshold, the credit amount is reduced by $50 for each $1,000 (or fraction thereof) of AGI over the applicable threshold amount. Modified AGI is the AGI shown on Line 11 of your 2022 Form 1040.
The credit is no longer fully refundable, either. Instead, only up to $1,500 of the child credit is refundable for some lower-income individuals with children. And you must have at least $2,500 of earned income to even qualify for this partial refund.
