IRS Tax Refunds 2022: Who will receive the biggest refund in 2022?
Three out of four taxpayers receive a check from the IRS after filing their tax returns.
In 2022, tax experts warn that certain people will receive a smaller check than usual.
The American Rescue Plan expanded the Child Tax Credit from $2,000 per child to $3,600 under age 6.
For those between 6 to 17, there was a $3,000 total per kid.
However, the Child Tax Credit could hit some parents’ tax refunds after filing their tax returns.
According to money w,atch reporter Aimee Picchi, “the CTC was paid out in advance through monthly checks from July 2021 through December 2021 – and parents will claim the other half of the tax credit on their tax returns before the filing deadline of April 18, 2022. (IRS offices will be closed this year on the traditional tax deadline of April 15 for Emancipation Day, pushing the filing deadline to the 18th this year).”
Picchi says that, instead of getting a usual tax credit of $2,000, parents will claim $1,500 to $1,800 depending on the age of their kids.
Who will receive the biggest refund in 2022?
-Parents with a child born in 2021: Tax experts believe that the families that welcomed (born, adopter, or fostered) a child in 2021 will have a larger refund because their parents will be able to claim the full enhanced CTC credit on their 2021 tax returns.
Working parents with kids in daycare:
There’s a booster for parents who paid for someone to care for their child while they worked or looked for work.
Previously, those parents claimed up to $3,000 per dependent. Now that credit is up to $8,000 per child with a maximum of $16,000 for two dependents.
The limitations are clear, the child must be under 13 years old or a person who isn’t mentally or physically capable of caring for themselves, lives with the taxpayer for more than half the year, and is a dependent.
Plus, a parent or both parents must have earned some income in 2021 to claim the tax credit.