The Child and Dependent Care Credit - which covers out-of-pocket expenses for child care and day camps - was reduced this year to $2,100 compared with last year’s $8,000. Last tax season, these filers got as much as $1,502 for the credit, which also had a higher income threshold then. The maximum EITC amount that single filers with no children are eligible for is $500 this year. It’s also not fully refundable anymore, meaning taxpayers won’t receive the full credit if it exceeds the amount of tax they paid - a change that hurts the lowest-earning families the most. Those credit amounts are now back to pre-COVID levels.įor example, the CTC declined to $2,000 per child dependent versus $3,600 last year. The average refund last year was 14.3% more than in 2021, with the increase largely due to temporary enhancements to the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and Child and Dependent Care Credit. Credit: Getty Images Loss of pandemic breaks
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