Congress has expanded the kid tax credit score twice since 2017, and these expansions have put wanted {dollars} within the pockets of many mother and father. Nonetheless, prepayments of the credit throughout 2021 may also create confusion throughout the 2022 tax-filing season and will go away some recipients owing sudden tax payments for 2021. Right here’s what mother and father must know.
As a part of the 2017 tax overhaul, Congress doubled the present little one tax credit score to $2,000 per little one underneath age 17 at year-end. It’s a dollar-for-dollar discount in taxes {that a} vary of filers can declare, as a result of it begins to part out at $400,000 of adjusted gross revenue for married joint filers and $200,000 for single filers.
