CBIZ
  • Article
February 20, 2023

Child Tax Credits Reduced for 2022 Tax Filings

Table of Contents

Some parents will be surprised to see lower refunds when they file their 2022 tax return. This is because the 2022 child tax credits are significantly less than the 2021 credits.

In 2021, the federal government gave taxpayers additional credits: Those who qualified received a $3,000 credit per child for children ages 6-17, and $3,600 for children under the age of six. For 2022, the per-child credit is $2,000. It is available to single, married filing separate, and head of household filers with modified adjusted gross income (MAGI) of $200,000 or less ($400,000 MAGI or less for joint filers). Above these thresholds, the credit amounts begin phasing out in increments of $50 for every $1,000 of additional MAGI.

The credits in 2021 were also fully refundable, but in 2022 only up to $1,500 of the credit is refundable if the taxpayer meets certain income thresholds.

The Child and Dependent Care credit was also significantly reduced. In 2021 some taxpayers could receive a maximum credit of $8,000, but that amount was reduced to $2,100 in 2022. Given these changes, using a 2021 tax return for any planning and computations for parents in the process of divorce requires special consideration. Please feel free to contact the CBIZ Matrimonial Team if we can be of any assistance.

© Copyright CBIZ, Inc. All rights reserved. Use of the material contained herein without the express written consent of the firms is prohibited by law. This publication is distributed with the understanding that CBIZ is not rendering legal, accounting or other professional advice. The reader is advised to contact a tax professional prior to taking any action based upon this information. CBIZ assumes no liability whatsoever in connection with the use of this information and assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein. Material contained in this publication is informational and promotional in nature and not intended to be specific financial, tax or consulting advice. Readers are advised to seek professional consultation regarding circumstances affecting their organization.

“CBIZ” is the brand name under which CBIZ CPAs P.C. and CBIZ, Inc. and its subsidiaries, including CBIZ Advisors, LLC, provide professional services. CBIZ CPAs P.C. and CBIZ, Inc. (and its subsidiaries) practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable law, regulations, and professional standards. CBIZ CPAs P.C. is a licensed independent CPA firm that provides attest services to its clients. CBIZ, Inc. and its subsidiary entities provide tax, advisory, and consulting services to their clients. CBIZ, Inc. and its subsidiary entities are not licensed CPA firms and, therefore, cannot provide attest services.