Retirement tax questions

Yes, if you have dependents, they could mean a lot more credits/deductions to your refund in some circumstances. For example, a single person or Head of Household who makes under a certain amount with/without a qualifying dependent could increase your credits if you meet income eligibility under the Earned Income Tax Credit. The CTC or child tax credit is worth up to $2,000 with $1,500 being refundable with a qualifying child. If you are head of household this also will lower your tax liability with higher standard deductions, meaning a lower tax bill and higher refund or lower liability. Other credits may apply depending on situation and income levels, here is a brief overview of the CTC:

Who Qualifies for the Child Tax Credit of $2,000 per qualifying child?

You can claim the Child Tax Credit for each qualifying child who has a Social Security number that is valid for employment in the United States.

To be a qualifying child for the 2022 tax year, your dependent generally must:

• Be under age 17 at the end of the year
• Be your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of one of these (for example, a grandchild, niece or nephew)
• Provide no more than half of their own financial support during the year
• Have lived with you for more than half the year
• Be properly claimed as your dependent on your tax return
• Not file a joint return with their spouse for the tax year or file it only to claim a refund of withheld income tax or estimated tax paid
• Have been a U.S. citizen, U.S. national or U.S. resident alien

You qualify for the full amount of the 2022 Child Tax Credit for each qualifying child if you meet all eligibility factors and your annual income is not more than:

• $200,000 in income ($400,000 for married filing jointly). Then the phaseout begins.

Keep in mind you must have provided for at least half of their support, among some of the other qualifying factors.

Parents and guardians with higher incomes may be eligible to claim a partial credit.

Use our Interactive Tax Assistant to check if you qualify. 

Here is some additional information on this link for claiming a dependent, and some of the credits/deductions you receive for doing so.

@cente671

Edited [01/19/2023 |01:50PM PST]