THE 2022 CHILD TAX CREDIT AND CHILD CARE CREDIT

 

An FYI

The temporary COVID-related expansion of the Child Tax Credit and the Child and Dependent Care Credit expired on December 31, 2021.  For tax year 2022 these credits return to the rules that existed before the expansion.

The Child Tax Credit for 2022 is $2,000 per qualifying child under age 17.  The credit phases out beginning at Modified Adjusted Gross Income (MAGI) of $200,000, or $400,000 on a joint return.  It may be partially refundable up to a maximum of $1,500 (adjusted for inflation).

The Child and Dependent Care Credit for 2022 is 20% - 35% of qualifying expenses up to $3,000 for one child and $6,000 for more than one child.  This credit is non-refundable.

While the Democrats have been attempting to extend the expanded credits for calendar year 2022, as of this writing they have not been successful in passing legislation to do so. 

Stay “tuned” to THE WANDERING TAX PRO for any changes to these credits or any other tax changes for 2022.

TTFN