In 2021 the American Rescue Plan was passed and expanded credits for families. Be sure you’ve got these important items covered in your tax return and receive the full amount of your Child Tax Credit. Here’s what every working parent needs to know about what’s new for the 2022 tax filing season.
2021 Recovery Rebate Credit
Up to $1,400 for babies born or dependents added in 2021 (income limits apply)
This makes up for missed stimulus payment in 2021
Expanded Child Credit
$3,000 for kids 6-17 years old, $3,600 for kids five and under (income limits apply)
Note that half of your total credit amount may have already been directly deposited to you monthly between July and December of 2021
Child and Dependent Care Credit Increase
35-50% of care expenses up to $8,000 for one child or $16,000 for two or more children
Total maximum benefits are $4,000 for one child, $8,000 for two or more children (income limits apply)
Lifetime Learning Credit
Income limit increased
However, tuition and fees cannot be deducted
Covid-related sick or family leave tax credit for self-employed individuals
To learn more tips and information about tax filing, check out this resource guide, The Important Tax Benefits for Working Families. You’ll learn about income taxes, from the basics to all federal tax breaks for working families and more.