These IRS tax breaks are changing for the 2022 filing

by: Nexstar Multimedia CableRussell Falcon

Job : November 6, 2022 / 08:00 CST

Updated: November 6, 2022 / 8:11 a.m. CST

(NEXSTAR) – There are major changes to tax deductions for the 2022 tax year (to be filed Spring 2023) as many of the extended US bailout benefits go away.

TurboTax reminds filers to know what credits will be canceled or withdrawn for filing, including changes to the Child Tax Credit and the Earned Income Tax Credit. Here is a breakdown.

Child tax credit

Rules 2021 leave

• Credit per dependent child under age 6: up to $3,600
• Credit per dependent child aged 6 to 17: up to $3,000
• Dependent children aged 17 could be claims
• Filers were eligible for the full credit if their income was less than $150,000 (married-filing jointly) and less than $75,000 (single) or less than $112,500 (head of household)
• You were eligible for full credit even if you didn’t owe income taxes, meaning the credit was “fully refundable”

2022 rules you will use for filing:

• The dependent child must be below 17 years
• Credit per dependent child: up to $2,000
• Filers are eligible for full credits if their income is until $400,000 (married-spouse filing) or $200,000 (single or head of household)
• Partially refundable: you can only receive up to $1,400 if you didn’t owe income tax

Credit for child care and dependent care

Rules 2021 leave

• Filers could get up to 50% credit on $8,000 in child care expenses for a child under 13 or an incapacitated spouse or parent. Alternatively, filers could receive up to 50% credit on $16,000 in child care costs for two or more dependents
• You could get a refundable credit if you lived in the U.S. more than half the year, even if you didn’t owe taxes
• Credit amounts decreased if your Adjusted Gross Income (AGI) was over $125,000

2022 rules you will use for filing:

• Filers could get up to 35% credit on $3,000 of child care expenses for a child under 13 or an incapable spouse or parent. Alternatively, filers could receive up to 35% credit on $6,000 in child care costs for two or more dependents
• Credit amounts decrease if your Adjusted Gross Income (AGI) is over $15,000

Earned Income Tax Credit (EITC)

Rules 2021 leave

• Filers without children were eligible
• Taxpayers without children over the age of 65 or between the ages of 19 and 25 were eligible
• The EITC amount was up to $6,728 for filers with three or more children

2022 rules you will use for filing:

• Filers without children must be at least 25 or under 65 to be eligible
• Earnings from the previous year cannot be used to help you qualify for ETIC
• EITC amount increased to $6,935 for filers with 3 or more children

TurboTax also explains that neither the recovery refund credit (for those who did not receive a third stimulus payment) nor the sick leave and family leave credits for the self-employed will apply to the year of deposit 2022.

For more information about credits and deductions for the 2022 filing year, visit the Internal Revenue Service. The deadline to file 2022 taxes will be Tuesday, April 18, 2023.