Child Tax Credit Update: How Will the CTC Affect Your 2022 Tax Returns?

0

WWith 2021 turning into 2022, it’s time to start thinking about filing your income tax returns for the year 2021. It wasn’t a normal year, with Joe bidenof the Presidency of the EU leading to various stimulus packages and financial aid to the United States. This could therefore have an impact on the way your income tax returns are to be filed.

Do Monthly Child Tax Credit Payments Affect Your 2021 Tax Return?

In the second half of 2021, parents could receive advance payments of the Year’s Child Tax Credit money, claiming up to $ 300 per month for each child under six and $ 250 per months for each child between six and 17 years old.

These payments were advance payments of a credit that already existed before 2021. This therefore means that you will not be able to claim the full amount of the Child Tax Credit on your income tax return for 2021, if you have already received a part. of that money. in advance during the last months of 2021.

No one has been allowed to claim the full amount, so there will be some kind of credit left when filing the 2021 tax return, but payments received from July to December will result in a larger tax bill when filing now.

However, not everyone received the advance payments, as there was an option to opt out. Thus, these people will be able to claim the full amount of the child tax credit for 2021 this spring, up to $ 3,600.

Will the child tax credit program continue in 2022?

There has been a debate in the United States over whether or not to extend this tailored child tax credit program until 2022.

Joe biden wanted to extend the child tax credit program until 2025, but it faced opposition from some Democrats and Republicans.

Calls therefore continue for a more permanent version of the 2021 child tax credit temporary payments.


Source link

Share.

Comments are closed.