And the portion of the credit treated as refundable - meaning it is paid to you even if you don’t owe any federal income tax - is capped at $1,500, and that is only available to those with earned income of at least $2,500.īut that’s well below the now-expired enhanced child tax credit that was in effect for 2021.
Above those levels, the credit starts to phase out. Most Americans get a federal tax refund every year, and for many that refund is a big boon to their finances.īut that boon may be smaller this year, in part due to the expiration of some tax-break enhancements that were in effect the previous tax year.Ĭhild tax credit: For tax year 2022, parents may claim a maximum child tax credit of $2,000 for each child through age 16 if your modified adjusted gross income is below $200,000 ($400,000 if filing jointly). (If you pay later than April 18, you may be subject to penalties and interest.) If it turns out you will owe additional money to the IRS, and need some time to get the funds together, “You still can file but set your payment to go on April 18,” said Kathy Pickering, chief tax officer at H&R Block.
And your financial circumstance may have altered too, if you sold any assets or were laid off. Several popular tax breaks have changed since you filed your 2021 return. Here’s why: The amounts might be very different than they were last year.
So, whether you expect to file your 2022 federal income tax return right away or wait until the last minute, now is a good time to get a sense of whether you’ll owe more money to the IRS, or whether you’ll likely get a refund and if so, how much. Official tax-filing season kicks off Monday, January 23, and it may hold some surprises for your wallet.
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