While many states are creating their own child tax credit, 2022 will look different than 2021 when it comes to the IRS.
For the year 2021, the child tax credit saw a temporary increase to as much as $3,600 per child thanks to the American Rescue Act.
In addition, families received payments each month from July through December in advance.
Here are some major changes for 2022 and the IRS’ child tax credit
First, the biggest change is that there will be no advanced payments this year.
In 2021, there were 6 advanced payments for 6 months worth as much as $300.
This totaled the first half of the entire estimated amount someone would be getting.
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The other major change is that the most in child tax credits a family could see is $2,000.
This was the amount before the pandemic and tax laws changed for 2021.
The phase out for receiving the credit will be different as well.
In 2021 families saw the full payment if they made $150,000 as couples or $112,500 as a single filer.
For every $1,000 over the limit, the benefit was lowered by $50.
This year with the $2,000 credits, the limit is $400,000 for married couples and $200,000 for single filers.
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