CTC and DCC

[Hayleemphillips]

Will/How does Child Tax Credit and/or Dependent Care Credit impact this years tax return? I am a new mother to a seven month old baby. 

[GabyC-EA]

Congratulations!

The Child Tax Credit f or tax year 2022 is $2,000 per child for qualifying children through age 16.  Part of this credit is refundable as the Additional Child Tax credit, which means you might be eligible to get a refund even if you owe no federal tax income tax.

Having a child will also make you eligible for:

• Head of household status (if single)
• Increase the amount you can claim for Earned income Tax credit.
• If you pay for childcare to allow you to work and earn taxable income in 2022, you may be eligible for the Child and Dependent Care Credit worth up to $1,050 for the care of one child under age 13, or up to $2,100 for the care of two or more children under 13.

If you want more detail information, please review this article: Birth of a Child.

[JandKit]

Hi Hayleemphillips!

In addition to the excellent advice given by Expert GabyC-EA and in particular to your case, You would qualify for $3,600 in cash payments for your child. Even further, if already seeking public assistance benefits, this child tax credit does not disqualify you from receiving those benefits. Because this cash is not counted as income, it will not affect any other request for assistance you may qualify for!

[SuziM]

Thanks for your participation in our Ask the Expert event regarding "How does the Child Tax Credit and Dependent Care Credit impact this year's tax return for you?"! We’d love to get your input on the event and your TurboTax experience: Click here to leave a video testimonial.