In 2021 the child tax credit was different than it will be this year when filing tax returns with the IRS.
For 2021 the credit was bumped from $2,000 to a maximum of $3,600 for children under age 6.
Children between 6 and 17 could see credits worth up to $3,000.
On top of that, the IRS sent monthly payments between July and Dec. 2021 for the first half of the tax credit.
What is different with the child tax credit in 2022 compared to 2021?
There are no more monthly payments
Last year families saw that monthly payment for the second half of the year.
Millions of children were lifted out of poverty thanks to those payments.
This year there have been no payments because the expansion expired.
Now, for 2022, the credit will be worth $2,000 again when claimed in 2023.
The most you can claim for the child tax credit in 2023 is $2,000, not $3,600
The tax credit was once worth $1,000 but in 2018 was bumped to $2,000.
The regular baseline is $2,000, so last year’s boost was only temporary and expired.
When this happened, it reverted to the baseline.
The thresholds for phasing out have changed
For 2021 married couples could get the payment if they made less than $150,000.
Head of household’s could get it if they made under $112,500.
For every $1,000 past those limits the child tax credit went down $50.
In 2020, when it was at the normal $2,000 the phase out started when joint couples made over $400,000 and everyone else made $200,000.