Child Tax Credits Explained – Family Magazine

The tax credit for children was just increased in 2021 and not in previous years. These changes do not affect 2022. The tax credits are refundable. In the event of the tax obligation of a person is in the current year, the total of the qualifying child tax credit may wipe out a person’s tax liability. Also, the child is then eligible to receive any credit amount based on that new non-liability as well.

The process can be complicated by income limitations. Singles cannot have more than 200k in income, while married couples cannot have more than 400k to qualify. New rules permit singles having an adjusted gross that is less than 75k be eligible. The head of household who is filing jointly and earning less than 150k or a household head that earns less than 112k could be considered eligible. If their income is greater than this amount, then the additional credit will be phased-out. vgmki2x8i7.