Don’t Leave Money on the Table: What You Need to Know About The Child Tax Credit

Tax day is just about here. And this year families may receive more money through the more generous Child Tax Credit for 2021. But here’s the thing. A recent survey shows that many parents are not aware that more money could be coming to them. 

Don’t be one of them. 

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 

• Covid-related sick or family leave tax credit for self-employed individuals
• Note that these changes are only for the 2021 year.

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.