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Child Tax Credit 2022 — Thousands of Americans to get $750 new direct payments next month – when to expect cash

Child tax credit 2022: How much is it and when will I get it?
Twelve states with their own child tax credit programs
Can both parents claim child tax credits?

TAX rebates worth up to $750 are on the way for families in Rhode Island, and nearby states have similar programs.

In Rhode Island, families will get $250 per child and a maximum of $750 total for up to three children with payments going out beginning in October.

In Connecticut, families can also claim $250 per child, which is capped at three children - for a total of $750. These payments started rolling out in late August.

Meanwhile, New Yorkers claiming the Empire State child credit, which is based on income, will be mailed their checks automatically and can expect to receive them by the end of October.

Read our new Child Tax Credit live blog for the latest updates...

  • Josephine Fuller

    Child Tax Credit income requirements

    Single filers making less than $200,000 per year get the full credit.

    Married couples making $400,000 per year also get the credit.

    For every $1,000 over this limit, payment is reduced by $50.

  • Josephine Fuller

    What recipients spent money on, part two

    According to the Center for Budget and Policy Priorities, 19 percent of those that go the Child Tax Credit, and make less than 35,000 per year spent the money on car payments, and 17 percent paid down debt.

    Sixteen percent spent funds on childcare, and 8 percent invested.

    Only 4 percent spent the money recreationally.

  • Josephine Fuller

    What recipients spent money on, part one

    According to the Center for Budget and Policy Priorities, 91 percent of families making less than $35,000 per year are using their monthly Child Tax Credit payments for food, clothing, shelter, and utilities — or education. 

    To break it down, 40 percent of families used their payments to pay for school books and supplies, tuition, after-school programs, and transportation to and from school.

    Fifty-nine percent bought food, and 52 percent spent funds on utilities, and 44 percent purchased clothes.

  • Josephine Fuller

    Child Tax Credit overall decreased poverty

    According to U.S. Census Bureau data released on September 13, the US child poverty declined 46% from 9.7% in 2020 to 5.2% in 2021.

    This was calculated using the Supplemental Poverty Measure, which takes into account nonbiological household members, such as foster children.

    It is calculated based on expenditures such as food, clothing, shelter, and utilities.

    This is when the increased Child Tax Credit, as part of the American Rescue Plan, was implemented.

    The official poverty measure calculated that child poverty declined only 0.7 percentage points, from 16.0% to 15.3%.

    This estimate is based on three times the cost of a minimum food diet in 1963 and does not take into account as many varying factors such as housing costs, as the Supplemental Poverty Measure does.

  • Josephine Fuller

    Lawmakers call for pregnant moms to get benefits

    Sen Mike Lee and Sen Steve Daines, both Republicans are the leading advocates for the “Child Tax Credit for Pregnant Moms Act,” which allows pregnant moms to claim the Child Tax Credit (CTC) for their unborn children. 

    The bill was not been voted on.

    "I am honored to support its expansion and to include expectant mothers whose children are not yet born," Lee said.

    "This bill will help protect life, support parents, and reduce the number of children born into poverty.”

    "From prenatal care to stocking up on baby supplies, this tax relief will help parents prepare for the arrival of their baby," Daines added.

  • Josephine Fuller

    What if parents are divorced?

    If parents are divorced or separated, the parent that claimed the child will receive the credit.

    If the parent is receiving credit in error, they are encouraged to go to IRS.gov and unenroll to stop receiving payments.

  • Josephine Fuller

    The federal credit

    The American Rescue Plan has allocated a yearly payment of $3,000 per child for children over the age of six until they are 17.

    In 2021, Kids under six got anywhere from $2,000 to $3,600 for children under the age of six.

    Most people divide this into monthly payments., untill this was eliminated in 2022.

    The income limit for the full payment is $150,000 for a couple or $112,500 for a single parent.

  • Josephine Fuller

    Connecticut credit closes

    The state of Connecticut issued $250 checks to families making less than $200,000.

    There was a limit of up to three children.

    The checks went out in August.

    Single filers needed to make $100,000 or less to receive payment.

    “In addition to making groundbreaking investments in childcare, crime prevention, environmental protection, and caring for our most vulnerable, the budget that we just enacted provides relief specifically targeted for lower and middle-income families with children,” Governor Lamont said when the payment was announced.

  • Josephine Fuller

    New York's Child Tax Credit

    The 2022–2023 New York State budget allows for one-time checks to eligible taxpayers for both the Empire State child credit and the one based on the earned income credit.

    The state will automatically send those who qualify a check throughout September.

    The amount varies based on income and is a percentage of last year's payment.

  • Josephine Fuller

    Potential Congressional deal could impact CTC

    Negotiations have begun in Congress to push a federal CTC into law by the end of this year.

    Democrats were not able to extend the CTC this past year due to Joe Manchin's opposition, but a negotiation to revive the CTC in exchange for corporate tax cuts could be in the works.

    The Washington Post reports these discussions "have been quietly ongoing for months" and could put CTC back on the table.

  • Josephine Fuller

    Eligibility for child and dependent care credit 

    In order to qualify for child and dependent care, you have to meet all of the following: 

    • You must have earned income for the tax year.
    • If you’re filing jointly with your spouse, you both have to have earned income for the tax year.
    • You must be the custodial parent or main caretaker of the child or dependent.
    • The child or dependent care service must have been used so that you could work or seek employment
    • Your filing status must be single, head of household, qualifying widow or widower with a qualifying child, or married filing jointly
    • Your child or dependent must be under 13.
    • If they are disabled and physically or mentally incapable of caring for themselves, there is no minimum age requirement.
    • The childcare provider cannot be your spouse or dependent or the child’s parent.
  • Josephine Fuller

    The mission of child care credit

    The child and dependent care credit is designed to provide financial relief for working parents and guardians in raising a child or a disabled dependent. 

    The credit is dependent on the taxpayer’s income and the expenses used to provide for the child or dependent.

    It ultimately reduced the federal income taxes, which means people can receive a higher refund. 

  • Josephine Fuller

    Deducting summer camps and daycare expenses 

    For people who paid for a daycare center, babysitter, summer camp, or other care providers to care for a child under age 13 or a disabled dependent of any age, they are eligible for a tax credit.

    It is up to 35 percent of qualifying expenses of $3,000 for one child or dependent, so the maximum a person can claim is $1,050 per child, as reported by Turbotax.

  • Josephine Fuller

    The Quality Childcare Initiative Grant, part three

    To apply for the grant, organizations must attend the Letter of Intent and Stewardship Package Meeting on September 27, 2022, at 530 pm.

    You must RSVP to Dorothy Chambers at 812-235-6287 or [email protected].

    Details for the full grant eligibility can be found at uwwv.org/funding.

  • Josephine Fuller

    The Quality Childcare Initiative Grant, continued

    The grant is for two years and up to $150,000 will be available upon request for a proposal grant.

    Plus, childcare sites can grab up to $20,000 per year and must meet at least one of the following objectives:

    • Increase regulated capacity in an existing Levels 3 or 4 Paths to QUALITY or ExceleRate Illinois program
    • Attain Level 3 or 4 in Paths to QUALITY or ExceleRate Illinois for an existing program
    • For a new program, show progress toward enrolling in Paths to QUALITY or ExceleRate Illinois and attaining Level 3 or 4
  • Josephine Fuller

    The Quality Childcare Initiative Grant

    In an effort to increase quality childcare, the United Way of the Wabash Valley is offering a third round of the Quality Childcare Initiative Grant opportunity.

    The initiative is funded through Success By 6 Impact Council which promotes healthy early childhood development.

    A major focus is to lay the foundation to prepare children for lifelong learning.

  • Josephine Fuller

    The Pregnant Workers Fairness Act

    Passed in 2021, the Pregnant Workers Fairness Act was created to stop discrimination toward pregnant workers.

    The law states that employers cannot force pregnant workers off of the job.

    Plus, they cannot deny them reasonable accommodations that would allow them to continue working while maintaining healthy pregnancies.

  • Josephine Fuller

    USDA’s $12.5billion plan to reduce childhood hunger

    The USDA is working towards ending child hunger by providing summer food buying benefits to families with children.

    The agency is working with 42 states and issuing roughly $12.5billion in temporary nutrition benefits to nearly 32million children, according to a press release.

    Cindy Long, administrator of the USDA’s Food and Nutrition Service, said in the statement, “Providing children with the food and nutrition they need to live healthy lives is a year-round mission, and we are proud to partner with many states and territories to provide food-buying benefits for this summer.”

  • Josephine Fuller

    White House Conference on Hunger, Nutrition, and Health

    The conference will be September 28 and will focus on nutrition security and maintaining consistent and equitable access to healthy, safe, and affordable food, according to a press release.

    The White House Conference will also call on all stakeholders to address hunger and improve nutrition and diet-related health.

    This will be the first conference in 50 years, since 1969, which led to the expansion of the National School Lunch Program and other, similar programs.

  • Josephine Fuller

    The cost of raising a child

    The USDA issued a report in 2017 detailing the cost of raising a child in America.

    The measure is for a middle-income, married couple with two children born in 2015.

    As inflation has since gone up raising prices in nearly every sector, the report may not be as accurate but did factor in a four percent inflation rate.

    The report showed that the cost of raising a child born in 2015 through 17 is $310,605 – nearly $18,0000 per year.

  • Josephine Fuller

    USDA partnerships offer benefits for families

    The US Department of Agriculture partnered with 26 states and Puerto Rico to offer children temporary food benefits.

    Children will be eligible for the program if they receive free or reduced lunch at school, or if they’re under the age of 6 and live in a household that receives SNAP benefits.

    An estimated 13million children will benefit from the program.

    Benefits will be loaded onto a debit card that can be used to buy food.

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