Welcome back to Ned’s blog spot, where you can find all the answers to your tax questions. This will be our last blog post until after tax season, and with that, we want to wish all of you the Merriest Christmas from our Ned Jackson Family, to yours! In today’s blog topic, we will be discussing child tax credits, additional child tax credit, and other dependent credits.
The biggest change for the 2022 tax year, will be the extinction of the Advanced Child Tax Credits. However, along with getting rid of those advanced payments, also reduced the rate of tax amount per child. For the 2022 tax year, the new rate will be as follows: $2,000 per qualifying child (under the age of 17) and has a refundable component or the additional child tax credit of up to $1500, subject to MAGI (Modified Adjusted Gross Income) phaseouts. Your contributions are phased out if your MAGI exceed the allowed limits. The eligibility for the child tax credit remains the same; each qualifying child claimed on the tax return must have a social security number.
Dependents not eligible for the child tax credit, may be eligible for the other dependent credit (ODC) of $500. Dependents qualifying for the ODC include qualifying children aged 17 and older, dependents without a social security number, or qualifying relatives. Please remember when claiming the CTC or ODC, we must see proof the dependent lived with you for more than half the year. There are many ways to prove this such as, but not limited to: statements from school, medical, daycare, church, etc…
We hope you find this information helpful as you begin to prepare for the upcoming tax season. And as always, the information for our main office downtown will be listed as well. Don’t forget to check back for more!
Ned Jackson Downtown Office
255 N Liberty Street
Jacksonville, FL 32202