Tag: tax credit

Filers should know about changes to common credits

The Child Tax Credit, the Earned Income Tax Credit and the Child and Dependent Care Credit have reverted to pre-COVID levels. This means that taxpayers will likely receive a significantly smaller refund compared to last year.

  • For 2022, the Child Tax Credit is worth $2,000 for each qualifying child. A child must be under age 17 at the end of 2022 to be a qualifying child.
  • For the Earned Income Tax Credit, eligible taxpayers with no children may get $560 for the 2022 tax year.
  • For the Child and Dependent Care Credit, taxpayers may receive up to 35% of their employment-related expenses for 2022.

IRS sending letters to more than 9 million potentially eligible families who didn’t claim stimulus payments, EITC, CTC, other benefits

the only way to get the valuable benefits is to file a 2021 tax return

The IRS is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation. These and other tax benefits were expanded under last year’s American Rescue Plan Act and other recent legislation. Even so, the only way to get the valuable benefits is to file a 2021 tax return. Also, to help people claim these benefits, without charge, Free File will remain open for an extra month this year, until Nov. 17.