To lessen the economic impact of the epidemic, thousands of American families got a bigger child tax credit only in 2021. However, parents can anticipate a lesser tax relief for their children in the year.
Parents might earn at least $3,600 for every kid below the age of six in 2021. And nearly $3,000 for all other kids, aged 7 to 17. The program returned to its previous form in 2023 once those improvements had expired, which was less substantial ($2,000 per child under the age of seventeen).
Child Tax Credit Is Here To Stay
Although it has reverted to its prior levels, the child tax credit is not going away. Before IRS can allow you to collect the tax credit, parents and their children must fulfill a variety of criteria. For every $1,000 of earnings beyond the cutoff, your refund amount is decreased by $50.
Democratic lawmakers said that the child tax credit has greatly decreased poverty levels in the United States and sought to extend it past the 2021 tax year. However, because the bill was not passed before Congress broke for the year at the end of 2022, the credit for this tax year was reduced to $2,000 for each qualified child instead of being handed out in advance installments every month.
As of February 11, upwards of 28 million tax forms had already been completed, and the typical refund was $1,997, 14% less than the exact same period last year. Nevertheless, as tax season unfolds and more individuals file their returns, that number is sure to shift.
You might still be eligible to use the extra child tax credit even though your taxes draw even. Even when your tax liability is nil, this part of the tax credit for children entitles you to a return of up to $1,500 a kid.
