MILLIONS of families will be eligible for the federal Child Tax Credit (CTC) in 2022.
In 2021, the temporary boosted family benefit was worth a maximum of $3,600.
Here is what you need to know about child tax credits
Parents with children below age five and younger got $300 each.
Those with kids between the ages of six and 17 received $250 each.
But Congress has failed to extend the $3,600 tax credit.
However, keep in mind there will still be a federal benefit this year – it will just be smaller.
Also, some states are offering their own version of the CTC.
1. Connecticut
This credit formed part of Connecticut’s 2022-2023 budget bill, which was signed into law by Governor Ned Lamont in May.
Those eligible for the credit have started to see a rebate of $250 per child, which is capped at three – equaling a maximum of $750.
The state’s Governor, Ned Lamont, announced the Connecticut Department of Revenue Services started issuing rebates at the end of August via mail.
To get the maximum amount for each child, eligible recipients must have met the following income thresholds:
- Single or married filing separately must make $100,000 or less
- Heads of household must make $160,000 or less
- Those married filing jointly have to make $200,000 or less.
The deadline for applications to have been submitted was July 31.​
Rebates were approved for more than 189,000 families on behalf of more than 300,000 children.
An additional 32,808 applications were under review by the Department of Revenue Services due to incomplete applications or issues regarding eligibility.
Rebates in that group were released in early September.
2. Vermont
Vermont is another state that has taken 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.
Families who claimed the credit would lose $20 for every $1,000 over the $125,000 they earn.
3. Rhode Island
 Rhode Island parents will get $250 for each qualifying child.
The maximum benefit is capped at three, meaning the most a family can claim is $750.
To be eligible, you needed to file a 2021 Rhode Island Personal Income Tax Return.
For taxpayers who filed an original or amended return by August 31, your rebate should have been issued in October 2022.
For those who filed an extension by the October 17 extended filing deadline, your rebate will be issued starting in December 2022.
Roughly 115,000 families across the state are expected to benefit.
What is the federal child tax credit in 2022?
Millions of other American taxpaying parents across the country are set to see the federal CTC revert to a maximum of $2,000 this year.
This is in line with the program offered before the 2021 expansion.
That means for this 2022 tax year, the money will be distributed in the form of a single end-of-year tax credit, the previous program from the Internal Revenue Service (IRS).
This will either reduce the size of the recipient’s tax bill or increase their tax refund.
Children must be age 16 or younger to be eligible for the support.
Modified gross income (AGI) cannot exceed $400,000 on a joint return and $200,000 on a single or head-of-household return to get the full benefit.
Above those incomes, a $50 decrease would take effect for every $1,000 in additional income.
How does this compare to federal child tax credits in 2021?
In 2021 only, the federal child tax credit was temporarily boosted to a maximum of $3,600 per child under President Joe 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
The purpose of the American Rescue Plan, which was signed into law by President Biden in March 2021, was to help families get by amid rising costs and to help bring the US economy back to health after Covid.
Most Democrats were pushing to extend the credit, but many Republicans opposed it.
President Biden has previously called to extend the child tax credit payments until at least 2025.
Research from the Center on Budget and Policy Priorities has found that the American Rescue Plan helped reduce child poverty by more than 40 percent.
There was also a nonfilers tool open for low-income Americans to claim the child tax credit.
The deadline to claim without filing taxes was on November 15.
HOAR has more on why some people waiting on refunds could be getting even more.
We also explain what parents who share joint custody of kids need to know about child tax credit payments.
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