Child Tax Credit 2022 latest — You may have missed crucial IRS letter – how to get $6,728 refund even after the deadline
MILLIONS of Americans could still be owed money from the Internal Revenue Service (IRS), and you might still be able to claim it.
The IRS started contacting Americans who appeared to be eligible for various benefits but failed to claim them by submitting a 2021 federal income tax return in the middle of October.
This includes people who, depending on their individual and family circumstances, may be qualified to claim all or part of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit, and other tax credits.
For each eligible adult or child, the Recovery Rebate Credit, worth up to $1,400, is offered to those who missed last year’s third round of stimulus payments.
Depending on the size of the family, the Earned Income Tax Credit can be worth up to $6,728, and the Child Tax Credit up to $3,600 per child.
While the extended deadline to file for 2021 passed on November 17 for most households, you still have a couple of years to file for 2021 and eventually claim the credit.
You will still have to fill out Form 1040 with income and dependent information for 2021 as well as a Schedule 8812 form outlining your tax credits for that year.
Read our child tax credit live blog for the latest news and updates…
Over 12,000 kids to lose childcare
12,470 childcare spots will be eliminated in September 2024 when the state’s allotment of federal COVID-19 relief funds is exhausted, reports Vicksburg News.
The Mississippi Department of Human Services is using a substantial amount of federal COVID-19 relief funds to keep these spots open, but the money will run out by next year.
State officials are working quickly to find a solution, as experts predict the state will see an additional 5,000 unplanned births a year.
Republican Senators propose Family Security Act 2.0, part two
Americans making over $10,000 are eligible for the child tax credit under the new Republican plan.
Checks per child are limited to under six children.
Those making over $200,000 per year and couples making over $400,000 would receive lower checks due to their income.
For every $1,000 earned above the previously stated incomes, the credit would decrease by $50, as the tax break is intended for Americans with low to moderate incomes, CNBC reports.
Republican Senators propose Family Security Act 2.0
Republican Senators Mitt Romney, Richard Burr, and Steve Daines have proposed a “pro-family, pro-life, and pro-marriage plan,” CNBC reports.
The Republican Senate proposal has plans to take another look at child tax credit checks that expired last December.
The proposal details that families would receive $350 a month per child under the age of five and $250 a month for children ages six through 17.
The mission of childcare credit
The child and dependent care credit are designed to provide financial relief for working parents and guardians in raising a child or a disabled dependent.
The credit is dependent on the taxpayer’s income and the expenses used to provide for the child or dependent.
It ultimately reduced the federal income taxes, which means people can receive a higher refund.
Survey shows poverty still rampant
In a recent survey from the Center for Law and Social Policy, of parents earning $75,000, it was found that 60 percent of parents who stopped receiving federal credit are struggling financially.
Among these parents, about two-thirds said they had trouble covering basic needs including food and groceries (66 percent) and paying the bills (65 percent).
40 percent struggled to pay the mortgage, and nearly half struggled to purchase.
Tax credit helps make college more affordable, continued
The Lifetime Learning credit is:
- Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify
- Available for all years of postsecondary education and for courses to acquire or improve job skills
- Available for an unlimited number of tax years
The taxpayer or the dependent must have a Form 1098-T, Tuition Statement in order to receive this credit.
There are exceptions for some students who must complete Form 8863, Education Credits, and file it with their tax return.
Tax credit helps make college more affordable
The American Opportunity credit and Lifetime Learning credit can help offset the costs of higher education.
Eligible taxpayers who paid for themselves, their spouses, or dependents to attend college in 2021 can qualify for these credits.
The American Opportunity credit is:
- Worth a maximum benefit of up to $2,500 per eligible student
- Only available for the first four years at a post-secondary or vocational school
- For students pursuing a degree or other recognized education credential
- Partially refundable; Taxpayers could get up to $1,000 back
Counties with the lowest child poverty rates
The five counties that have the lowest rates of child poverty are:
- Stanley County, South Dakota – Child poverty rate: 0.0 percent
- Douglas County, Colorado – Child poverty rate: 2.4 percent
- Goochland County, Virginia – Child poverty rate: 2.4 percent
- Carver County, Minnesota – Child poverty rate: 2.5 percent
- Rooks County, Kansas – Child poverty rate: 2.8 percent
Cities with the highest child poverty rates
As poverty and inflation rates rise, children continue to be disproportionately affected.
Over 40million Americans live below the poverty line with the US being one of the worst child poverty rates among wealthy, developed countries.
The top five cities with the highest rates are:
- McAllen-Edinburg-Mission, Texas – Child poverty rate: 39.6 percent
- Brownsville-Harlingen, Texas – Child poverty rate: 38.3 percent
- Monroe, Louisiana – Child poverty rate: 35.4 percent
- Las Cruces, New Mexico – Child poverty rate: 34.7 percent
- Albany, Georgia – Child poverty rate: 34.2 percent
YouthBuild helps kids by providing education, prepare for future careers, and grow into community leaders.
The program targets students 16 years old up to 24, helping them develop leadership skills and community service awareness.
The students learn to build affordable housing as they earn their high school diploma or GED.
IRS could seize your child tax credit
There are two groups that may have their credits seized by the IRS on their tax return or be obligated to pay back the agency. If you did not opt-out of the monthly payments when you were no longer eligible, you will most likely have to pay back the IRS.
To qualify for the full payments, couples must have made less than $150,000, while single parents who file as heads of households needed to make under $112,500.
Eligibility was determined by the Internal Revenue Service based on 2019 or 2020 tax returns.
CTC advocates say the fight isn’t over
Supporters of the CTC claim they are planning the following actions, according to Vox.
When Congress bargains extensions on lapsed company tax advantages at the end of the year, there may be the first opportunity for new legislation.
In light of state budget surpluses and recent studies that show how much families benefited from the now-expired enlarged federal credit, advocates are also considering new administrative solutions at the IRS and giving state-level reform more serious consideration.
“It was very unfortunate that we didn’t get the expansion that we wanted in reconciliation, but it still is a very live issue,” said Brayan Rosa-Rodríguez, a senior policy analyst at UnidosUS, a national Latino advocacy group.
“We’re going to focus on it over the next couple months to see if we can get it included in a tax extender bill.”
Build Back Better fails to reinstitute CTC boost
In addition to mixed public support, the Build Back Better (BBB) Act — and the expanded child tax credit by extension — did not receive overwhelming praise in Congress.
BBB remains unanimously opposed by Senate Republicans, and the proposed version of the CTC has been critiqued for providing benefits to non-working families.
GOP senators including Marco Rubio (R-FL) and Mike Lee (R-UT) have previously called for the CTC to be extended, but with a work requirement included.
White House: Hunger, Nutrition, and Health
For the first time in over half a century, the White House had its annual Conference on Hunger, Nutrition, and Health.
Speakers and national leaders discussed strategies for universal school meals and permanently extending Child Tax Credits.
The White House announced that $2.5billion will be invested in start-up companies with solutions to hunger and food insecurity.
Over $4billion will be dedicated toward philanthropy that improves access to nutritious food, promotes healthy choices, and increases physical activity.
Americans want government aid for family finances
A survey from Morning Consult found that three in five adult Americans feel the government is responsible for financial assistance and paid family leave after the Supreme Court ruling of Roe v. Wade.
Additionally, 63 percent of participants believe the government bears responsibility for providing child care and financial assistance specifically to lower-income families.
This includes 77 percent of Democrats and roughly half of Republicans.
Help coming to Wisconsin families
Two grants will provide over $10million to bolster childcare options throughout the state.
About $5million will help train and hire childcare workers in the state, reports Fox6.
The other half of the cash will go toward building housing for childcare workers.
Wisconsin officials hope this will cut back on waitlists for childcare facilities.
Inflation hits childcare costs
The cost of childcare in Nebraska has nearly doubled since 2019 when it cost just under $10,000 annually.
Meanwhile, childcare workers are making a median income of $23,000, reports ABC8.
Teachers’ wages have actually been boosted by 25 to 30 percent to remain competitive among other markets and not lose any more providers.
2021 CTC Review
In 2021 only, the federal child tax credit was temporarily boosted to a maximum of $3,600 per child under President Biden’s American Rescue 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
NYC offers vouchers for childcare
Help is coming to families who are struggling to find affordable childcare.
The childcare vouchers from the New York City Administration For Children’s Services.
They will help cover the cost for children from six weeks of age to 13 and children with disabilities who are up to 19 years old.
Vaccines for Children program explained
This federally funded program provides vaccines at no cost to children who might not otherwise be vaccinated because of their inability to pay.
The CDC buys vaccines at a discounted rate for distribution to registered Vaccines for Children (VFC) providers.
Children who are eligible for VFC vaccines may receive those vaccines recommended by the Advisory Committee on Immunization Practices.
Adjusted gross income explained
When filing, your eligibility for certain tax credits and rebates can be based on income requirements, which are based on adjusted gross income.
AGI is simply your total gross income (earnings before tax or other deductions) minus specific deductions.
Generally, the more deductions and credits you take, the lower your taxable income.
How to compute adjusted gross income
The first step in computing your AGI is to determine your total gross income for the year.
Your gross income includes your salary and any earnings from self-employment ventures, investment dividends, retirement income, and things of similar nature.
To arrive at your final AGI, you will subtract certain amounts from your total income.
For example, teachers can deduct unreimbursed classroom expenses, self-employed people can deduct insurance premiums, and everyone can deduct charitable donations.
An income calculator might be helpful during this process, and you can find one on TaxAct or TurboTax.
CTC helped single-parent households feel relieved
David Watson, a single parent with two children, was thrilled when the child tax credit arrived in July 2021.
Although financial struggles were real even before the pandemic, it made things worse for Watson.
“When I heard of the child tax credit, I was hopeful, but after the year I had, I didn’t want to get my hopes up too high,” shared Watson with Vox.
“Then, on July 15, I was on my last $60 and wondering how to make it stretch for two weeks when I got a text message saying I got a deposit of $500 into my account. The child tax credit came through.”
“I can’t tell you how relieved I was,” Watson added.
No Child Left Behind Title I Grants
The No Child Left Behind Title I grant program provides funding for school districts in low-income areas ensuring that the curriculum meets state academic standards.
Funding from this program must go toward students who are failing core subjects or are at risk of failing as schools can provide enrichment programs.
Grandparents and relatives can claim CTC
Parents are not the only eligible demographic for the CTC.
Those with a child living with them for more than half the year or providing child support are eligible for the CTC as long as they’re over 18 years of age.
Taxpayers can collect CTC for stepchildren, foster children, nieces, nephews, grandchildren, and even younger siblings, according to Yahoo! Finance.
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