Child Tax Credit 2022 latest — You may have missed crucial IRS letter – how to get $6,728 refund even after the deadline

In this article, you will get all the information regarding Child Tax Credit 2022 latest — You may have missed crucial IRS letter – how to get $6,728 refund even after the deadline

MILLIONS of Americans could still be owed money from the Internal Revenue Service (IRS), and you might still be able to claim it.

The IRS started contacting Americans who appeared to be eligible for various benefits but failed to claim them by submitting a 2021 federal income tax return in the middle of October.

This includes people who, depending on their individual and family circumstances, may be qualified to claim all or part of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit, and other tax credits.

For each eligible adult or child, the Recovery Rebate Credit, worth up to $1,400, is offered to those who missed last year’s third round of stimulus payments.

Depending on the size of the family, the Earned Income Tax Credit can be worth up to $6,728, and the Child Tax Credit up to $3,600 per child.

While the extended deadline to file for 2021 passed on November 17 for most households, you still have a couple of years to file for 2021 and eventually claim the credit.

You will still have to fill out Form 1040 with income and dependent information for 2021 as well as a Schedule 8812 form outlining your tax credits for that year.

Read our child tax credit live blog for the latest news and updates…

  • Tax credit for college kids

    The American Opportunity Tax Credit provides a credit for expenses paid for an eligible student for the first four years of higher education.

    You can get a maximum annual credit of $2,500 per eligible student.

    It is 100 percent of the first $2,000 you lay out and 25 percent of the next $2,000.

    According to the IRS, the student must meet the following criteria:

    • Be pursuing a degree or other recognized education credential
    • Be enrolled at least half time for at least one academic period* beginning in the tax year
    • Not have finished the first four years of higher education at the beginning of the tax year
    • Not have claimed the AOTC or the former Hope credit for more than four tax years
    • Not have a felony drug conviction at the end of the tax year
  • Potential Congressional deal could impact CTC

    Congress is considering pushing a federal child tax credit into law by the end of this year.

    Democrats were not able to extend the CTC this past year due to Joe Manchin’s opposition, but a negotiation to revive the CTC in exchange for corporate tax cuts could be in the works.

    The Washington Post reports these discussions “have been quietly ongoing for months” and could put CTC back on the table.

  • The uncertain future of the CTC

    The expanded child tax credit under the American Rescue Plan assisted many families financially.

    After it lapsed in 2022, advocates called on Congress to continue providing a child tax credit as an anti-poverty measure.

    Despite calls for another CTC, the future of the initiative remains uncertain.

    According to Politico, the CTC does not seem to resonate in the 2022 election cycle, and Republicans in Congress claim the program discourages Americans from working.

  • Family and Medical Leave Act explained, continued

    According to the Department of Labor, only 56 percent of employees are eligible for the FMLA.

    Even though qualified Americans are guaranteed time off, it is unpaid. This is problematic because the majority of Americans live paycheck-to-paycheck.  

    There’s a chance your employer might offer paid leave – but it’s not common. In fact, only 19 percent of US workers have access to paid family leave through their employers.

  • Family and Medical Leave Act explained

    The 1993 Family and Medical Leave Act (FMLA) states that employees can take up to 12 weeks of job-protected leave each year.

    However, some limitations disqualify employees for the FMLA.

  • Pennsylvania plan, part two

    Families earning more than $43,000 can get $180 for one child and $360 if they have two or more children.

    The Pennsylvania Senate first approved the budget bill in July.

    It’s estimated that nearly 221,000 families in the state will benefit from the refundable tax credit.

  • Pennsylvania plan, part one

    Governor Tom Wolf has revealed details about the Child and Dependent Care Enhancement Program.

    The plan will benefit working families who pay for daycare for their children, and who already qualify for the federal program.

    Pennsylvanian families who qualify will be able to claim the credit when filing state taxes starting in 2023.

    Households earning below $43,000 will be able to get $315 for one child, or $630 for two or more children.

  • How did the 2022 child tax credit compare to 2021?

    In 2021, the federal child tax credit was temporarily boosted to a maximum of $3,600 per child under President Biden’s plan.

    Enhanced funds were distributed on a monthly basis to help ensure struggling families a more constant stream of guaranteed income.

    From July to December 2021, eligible families received an advance child tax credit, of up to $300 per child.

    To be eligible for the maximum credit, taxpayers had to have an AGI of:

    • $75,000 or less for singles
    • $112,500 or less for heads of household
    • $150,000 or less for married couples filing a joint return and qualified widows and widowers
  • Vermont extended child tax credit

    Vermont took matters into its own hands after Congress failed to extend expanded child tax credits, which lapsed at the end of last year.

    Republican Governor Phil Scott signed off on a $1,000 child tax credit, for every child age five and under, to households earning $125,000 or below this year.

    Families who claimed the credit would lose $20 for every $1,000 over the $125,000 they earn.

  • Are both parents allowed to claim credits?

    Generally speaking, only one parent can claim a dependent on their taxes, and married couples filing jointly are both “claiming” the credit, as they share the benefits.

    If a married couple files separately, one parent can claim half of the child tax credits and split the benefit.

    Divorced, separated, or unwed couples must determine which parent will claim the child as a dependent each year.

    If you claimed your child as a dependent in 2020 and received advance payments in 2021, you may be required to return those advance payments if your co-parent plans to claim the full credit on their tax return.

  • Food insecurity among children reached lowest point in 2021

    According to EconoFact, the share of households with children experiencing food insecurity saw the lowest point on record since the measure started in 1998.

    Only 12.5 percent of households with children lacked access to enough food for an active, healthy life for all household members in 2021, significantly down from the rate of 14.8 percent in 2020.

    This coincided with the extension of the child tax credit nationally.

    The percentage drops of households facing food insecurity were higher among Black and Hispanic households with children by two to three percentage points.

  • Tax credit helps make college more affordable

    The American Opportunity credit and Lifetime Learning credit can help offset the costs of higher education.

    Eligible taxpayers who paid for themselves, their spouse, or dependents to attend college in 2021 can qualify for these credits.

    The American Opportunity credit is:

    • Worth a maximum benefit of up to $2,500 per eligible student
    • Only available for the first four years at a post-secondary or vocational school
    • For students pursuing a degree or other recognized education credential
    • Partially refundable; Taxpayers could get up to $1,000 back
  • Cities offering monthly CTC

    Baltimore, Maryland launched a program sending $1,000 per month to 200 low-income residents for two years.

    Ithaca’s, New York’s guaranteed income program offers payments worth $450, which are set to go out to 110 residents for a total of 12 months.

    Mountain View, California, will soon be able to apply for a monthly program giving 166 people $500 each month.

    Oakland, California is offering 600 families and 300 people $500 for 18 months.

    At least 110 residents in Shreveport, Louisiana have started receiving 110 $660 monthly payments for a year.

  • Americans want government aid for family finances

    A survey from Morning Consult found that three in five adult Americans feel the government is responsible for financial assistance and paid family leave after the Supreme Court ruling of Roe v. Wade.

    Additionally, 63 percent of participants believe the government bears responsibility for providing child care and financial assistance specifically to lower-income families.

    This includes 77 percent of Democrats and roughly half of Republicans.

  • Eligibility for Child and Dependent Care Credit

    Those eligible to claim the child and dependent care credit must:

    • You paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work
    • You (or your spouse if filing a joint return) lived in the United States for more than half of the year
    • Find out if you are eligible to claim the Child and Dependent Care credit
  • Lawmakers call for pregnant moms to get benefits

    Senators Mike Lee and Steve Daines, both Republicans, are the leading advocates for the “Child Tax Credit for Pregnant Moms Act,” which allows pregnant moms to claim the Child Tax Credit (CTC) for their unborn children. 

    The bill was not been voted on.

    “I am honored to support its expansion and to include expectant mothers whose children are not yet born,” Lee said.

    “This bill will help protect life, support parents, and reduce the number of children born into poverty.”

    “From prenatal care to stocking up on baby supplies, this tax relief

  • Changing age limits for CTC

    Under the American Rescue Plan’s rules, families with children 17 or younger were eligible for the full child tax credit.

    Meaning in 2021, 18 was the cutoff for CTC eligibility.

    For 2022 and later, child tax credit payments apply to families with children 16 and younger.

    If your child is 17 or will turn 17 before the end of this year, you will not receive a child tax credit payment.

  • Florida payments without spending limits

    The Sunshine State sent out checks worth $450 per dependent to the following groups of parents and caregivers:

    • Foster parents
    • Relative caregivers
    • Non-relative caregivers
    • Families receiving TANF cash assistance
    • Guardianship assistance program participants

    Families did not need to apply and the checks were mailed directly to eligible recipients.

    There were no limits as to what the money could be used for.

  • How to track refunds

    You can check your refund status at the Where’s My Refund page on the IRS website.

    However, the IRS only updates tax return statuses once a day during the week.

    This update usually happens between midnight and 6am.

  • Maryland residents can get relief

    Maryland residents with an adjusted gross income (AGI) of less than $6,000 can get $500 per child in state child tax credits.

    The credits are available to families with kids below the age of 17.

    There is no limit on the number of qualifying children for which the credit may be claimed.

  • The cost of raising a child

    The USDA issued a report in 2017 detailing the cost of raising a child in America.

    The measure is for a middle-income, married couple with two children born in 2015.

    As inflation has since gone up raising prices in nearly every sector, the report may not be as accurate but did factor in a four percent inflation rate.

    The report showed that the cost of raising a child born in 2015 through 17 is $310,605 – nearly $18,0000 per year.

  • Letter 6419 explained

    The letter contains key information regarding the expanded child tax credit in 2021, which includes the number of payments sent and amount of eligible kids.

    While you’ll be able to claim the rest on your tax return, you’ll want to hold onto letter “6419” if you received one to help you file.

    However, the IRS has acknowledged that it has received complaints from taxpayers about the letter showing the incorrect dollar amount on the letter.

  • Idahoans saw credit

    In Idaho, families can get a $205 child tax credit per child.

    It’s nonrefundable, meaning it’ll simply reduce the amount of tax you owe but you can’t get it as a check if you don’t owe any tax.

    The credit was originally worth just $130 per child but it was expanded immediately after its enactment in 2018.

  • Oklahoma children eligible for tax credit

    Families in Oklahoma can choose between a nonrefundable credit worth 5 percent of the federal CTC or a nonrefundable credit worth 20 percent of the federal Child and Dependent Care Tax Credit.

    The credits are limited to taxpayers with incomes under $100,000.

    The credits are nonrefundable.

  • Maine families get relief

    Maine households can get $300 per qualifying child thanks to the dependent exemption tax credit.

    The eligibility criteria are generally the same as for the federal child tax credit.

    The amount you can get is reduced by $7.50 for every $1,000 of AGI above $400,000 for joint returns and $200,000 in any other case.

    Maine residents, nonresidents and part-time residents can get the credits.

Child Tax Credit 2022 latest — You may have missed crucial IRS letter – how to get $6,728 refund even after the deadline

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