Tax season is right around the corner, making it the perfect time to understand what tax credits your family could be eligible for. Even after tax season has passed, its important to know what credits you might be receiving in the coming year. A great tax benefit for moderate and low-income families is the child tax credit. The Federal Child Tax Credit is a partially refundable credit, allowing families to reduce their tax liability dollar-for-dollar for up to $2,000 for each qualifying child. This benefit is part of the American Rescue Plan, and since July 15th many families have been receiving $250-$300 a month without lifting a finger.
While the Child Tax Credit has been around since 1997, The American Rescue Plan has increased the credit from $2,000 to $3,000 per child. Depending on the age of the child, the credit might qualify for up to $2,600. Working families are eligible to receive this credit if they make $150,000 as a household or $112,500 as a single parent family. To receive the credit, it’s imperative to file your 2022 tax return. There is no application needed. As long as the tax return is filed for 2022, the payment will be received automatically, avoiding any application hassles. Once the tax return is filed, the IRS decides from there if you qualify and automatically enrolls you.
The Child Tax Credit is a major benefit and can make all the difference for a family. Tax season may have passed for 2022, but the Child Tax Credit will continue to be important in years to come. It’s important for families to learn what types of benefits they could be eligible for. Taxes can feel, well, taxing. Benefits like the Child Tax Credit can be easy and make it feel less stressful for American families. To learn more about the Child Tax Credit, as well as learn what other tax benefits you could qualify for, visit benefits.gov to discover your benefits today.
