2022 Expanded Child Tax Credit: Everything to Know

by Megan Molseed
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(Photo Illustration by Scott Olson/Getty Images)

The 2022 Expanded Child Tax credit is due to deliver even more money to American families. Half of these funds have already been allocated to qualifying households in the previous year.

The advance child tax credit payments that began in 2021 may have ended in December. However, there are still more funds that households could receive from the expanded child tax credit as a part of the 2021 tax refunds. These funds will be allocated to the households when the official 2021 tax returns are filed later this month.

In order to make filing easier in relation to these credits, the IRS recommends that taxpayers who are expecting a further refund connected to the child tax credit refunds make sure to utilize Letter 6419 from the IRS when filing.

This form contains important details regarding each household’s child tax credit money. Information that will be needed when filing the taxes. The forms should be arriving at households who received the funding throughout the month.

How To File The Expanded Child Tax Credit Funds

The IRS notes that taxpayers will be able to claim the child tax credit money that the household had not received in 2021. The 6419 IRS letter will provide information regarding the amount a household received in advance; and how much they should expect to claim when filing their taxes this spring.

When a household or family meets the income eligibility requirements for the IRS expanded child tax credit funds, they likely received partial payments between July 2021 and December 2021. Families with children ages five years and younger could have received as much as $1,800 per child. Families also had the potential to revive $1,500 per child for children ages six to seventeen years old. The IRS has set no limit on the number of children who are eligible for this expanded child tax credit per family.

However, some families chose to opt out of receiving these early payments. If the household chose to opt out of receiving the advanced payments, they will receive the full amounts after filing their 2021 taxes. This can be up to $3,600 per child under the age of six; and $3,000 per child between the ages of six and seventeen years.

How To Avoid Some Major Delays This Tax Season

Of course, as with any tax-filing year, it is incredibly important to make sure your household’s taxes are done right. This, of course, is to make sure the household receives the correct refund amount with no delays. It’s not unheard of the IRS to take time on a filed return. Even seeking more information even months after the taxes are filed. The IRS saw as many as 6.3 million unprocessed tax returns as late last year. Some of these include tax returns filed with errors, slowing the process down.

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