Stimulus Update: Everything We Know About the Child Tax Credit for the 2022 Tax Year

Getting back to business as usual can be a challenge.

The expanded Child Tax Credit was a lifesaver for millions of families. In fact, for the brief time the program was expanded and families received monthly payments, child poverty was slashed by roughly 30%. Quoting Megan Curran, policy director at the Columbia University Center on Poverty and Social Policy, NPR reports that by the time the final monthly payment hit bank accounts, the benefit was keeping 3.7 million children out of poverty.

As parents and guardians across the country undoubtedly know, Congress opted not to extend the program, which expired in December 2021.

For the 2022 tax year, the previous version of the credit, worth up to $2,000 per qualifying dependent, is available to parents with children under the age of 17.

Child Tax Credit Q&A

Still, questions persist around the eligibility for the no-longer-expanded tax credit. Here we answer some of those questions.

Can non-tax-filers still claim the Child Tax Credit?

No, non-tax-filers can no longer claim the Child Tax Credit.

One of the benefits of the expanded Child Tax Credit was that it allowed all families to claim the credit on behalf of their children, even those who typically did not file taxes due to low income. Once the program ended and the credit reverted to the lower, pre-pandemic amount, the old rules came back into play.

Any family not required to file taxes due to low income has no access to the Child Tax Credit.

What if I'm no longer with my child's other parent but share custody and support 50/50 with my ex? Do we both qualify for the Child Tax Credit?

No, only the parent that claims the child as a dependent on their tax returns is eligible for the credit. If both parents try to claim the child as a dependent, the IRS will only recognize one parent's claim and the payment will hit that parent's bank account. Typically, it will be the parent with whom the child primarily lives.

Can all parents claim the Child Tax Credit?

No, residency, income, and age requirements must be met.

Residency requirement

The child must have lived with you for more than half the tax year you claimed the credit. There are, however, exceptions:

• A child born or passed away during the tax year is considered to have lived with you for the entire year.
• Temporary absences by you or your child for specific circumstances, such as school, business, vacation, medical care, detention in a juvenile facility, or military service, are counted as time the child lived with you.
• There are other exceptions to the residency test for children of divorced or separated parents.

Income requirement

For the 2022 tax year, a qualifying parent must have a modified adjusted gross income (MAGI) of:

• $200,000 or less for those filing separately for single, head of household, or married filing.
• $400,000 or less for those who file married filing jointly.

If taxpayers exceed these income limits, their credit is reduced by $50 for each $1,000 of additional income above the threshold.

Age requirement

Only children ages 16 or younger at the end of the tax year qualify for the Child Tax Credit.

Can I get Child Tax Credit payments in advance, as I did for a portion of 2021?

No, advanced payments were only available from July through December 2021. For the 2022 tax year, you'll need to wait to file your income tax return to receive the credit.

What if my household receives public benefits? How will Child Tax Credit money impact those benefits?

The Child Tax Credit has no impact on public benefits. Even if the taxpayer has an overdue tax bill or has other federal or state debt, the credit will not be used to offset that debt.

It's been a topsy-turvy few years, and it can be challenging to keep up with the changes. Even though we're moving back to a business-as-usual model, it's an adjustment.