Since families with high incomes pay a smaller percentage of their income in taxes than those with low incomes, the Child Tax Credit makes the tax code more equitable and enhances families’ financial stability now and in the future.
What Are The Qualifications For The Child Tax Credit In 2022?
The 2022 Child Tax Credit is available to parents who meet the terms and conditions of the qualifications and have dependent children who are under the age of 17 by the end of the year (December 31, 2022).
For the tax years 2022-2025, the child must meet the eligibility requirements to be claimed as a dependent on the taxpayer’s tax return and spend more than half the year living at the same address as the taxpayer. Over the course of the tax year, the child cannot provide more than 50% of their own financial support. The child also must have a valid taxpayer identification number in the form of a work-authorized Social Security number.
Is Your State Considering To Send Expanded Child Tax Credit Checks?
As of August 24, 2022, the following states that are planning to send Child Tax Credit checks are California, Colorado, Connecticut, Florida, Georgia, Idaho, Maine, Maryland, Massachusetts, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Rhode Island, and Vermont.
These states are not all fully refundable which means that you may potentially need to provide an income to receive the full amount owed to you.
California: The Child Tax Credit is only available for children under the age of 6 and the family must qualify in order to receive the California Earned Income Tax Credit. Any family that earns less than $25,000 are eligible to receive $1,000 either as a reduced state tax bill or a refund. Those earning an income between $25,000 and $30,000 would be receiving a reduced credit.
Colorado: Beginning in January 2023, families with incomes of $75,000 or less, $85,000 for married taxpayers filing jointly, are able to receive $250 for each child under the age of 18. The rebate caps at $750 for 3 kids. This Child Tax Credit is only available for children under 6 years old.
Florida: Families in Florida will receive $450 per child but the eligibility criteria are still unclear. Foster families in Florida are able to receive this relief money.
Georgia: Georgia allows taxpayers to claim their unborn fetuses as dependents on their tax returns after concluding their decision to ban abortion access. Taxpayers in Georgia can get up to $3,000 for the 2022 tax year between July 20 and December 31.
Idaho: Families in Idaho are potentially eligible to get a $205 nonrefundable tax credit for each qualifying child.
Maine: Local taxpayers are eligible to claim $300 for each qualifying dependent and qualifying child (the same as those who were claimed under the federal child tax credit under the dependent exemption tax credit.
Maryland: A bill that Governor Larry Hogan is expected to sign would grant a $500 refundable tax credit for each eligible child to any taxpayer who earns $6,000 or less.
Massachusetts: Families are eligible for $180 for a dependent or $360 for more than one dependent. Dependents must be under 12 years old to be eligible.
New Jersey: The recently established New Jersey Child Tax Credit Program provides a refundable $500 tax credit for each qualifying child under the age of 6 to households with an income of $30,000 or less. Families with incomes up to $80,000 may be eligible for $300.
New Mexico: Depending on the family’s income, they may be eligible for $25 to $175 per qualifying child starting in the 2023 tax year and continuing through the 2031 tax year.
New York: Families that qualify for the Child Tax Credit may either claim $100 for each qualifying child or 33% of the federal child tax credit and the federal Additional Child Tax Credit.
North Carolina: Taxpayers are eligible to obtain a deduction of up to $2,500 for each qualifying child depending on income and filing status.
Oklahoma: Households with an income less than $100,000 are eligible to get 5% of the federal Child Tax Credit.
Rhode Island: Families are eligible to receive Child Tax Credit rebates for up to $250 per child under 18 years old at a max cap of 3 children. The maximum household income for eligibility is $100,000 for single taxpayers and $200,000 for joint filers. Beginning in October 2022, these checks will automatically be issued to those who are eligible in Rhode Island.
Vermont: Households with an income less than $125,000 are eligible for $1,000 per child age 5 and younger.
Resolve Your Tax Bills
If you’ve found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there’s a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.