2022 Child Tax Credit Calculator; What You Should Know.

Child credit tax calculators can be convenient if you are unaware of how much credit payment you can get. It can help you calculate precisely how much you can claim. Child credit tax (CTC) is beneficial for low-income families. With the help of CTC, there has been a significant drop in rising poverty among children in the US. 

According to the USDA's “The Cost of Raising Child" report: a middle-income family has to spend a whopping amount of $233,610 a year on raising a child. 

With the Child tax credit payment calculator, you can easily estimate how much credit you can get the following year by answering a few questions.

Child Credit Tax: An Overview

Child credit tax was first introduced in 1996 by the US government as an act of help to low-income families. This credit was designed to reduce the burden of federal taxes on families at the stage of raising children. 

Families with net income less than their tax-paying ability were eligible for this credit. When this act was introduced, the tax credit was $500.

Moreover, a criterion was set to claim eligibility over the CTC:

Changes In CTC Throughout The History

A lot of changes have occurred throughout the history of the CTC. Since its introduction in 1996, the government of the US has been continuously revising and expanding the amount of credit. At first, it was $500, then after a few years, the National Commission of children changed the amount to $1000.

The amount remained $1000 until 2017, when TJCA changed the amount from $1000 to $2000 per child. In 2021 the ARPA again raised the amount and made child tax credit refundable. 

According to the 2021 child tax credit calculator data, the Child credit tax was increased from $2000 to $3000 for a child from 6-17 years. And added $600 for the child under 6 years. 

It was a significant step. Moreover, the amount was fully refundable, and the strict criteria of income to claim the tax credit were also removed. The amount was sent as advanced monthly payments from July to December. After that, families can claim their half amount in 2022 after filing the 2021 tax returns. 

But new reports for 2022 have suggested that the CTC will be imposed according to the 2020 child tax calculator, which is $2000 per child.

Child Tax Credit Calculator; How Can It Help You?

The child Tax credit calculator is a tool you can use to calculate the estimated amount you receive. The child tax credit payment calculator asks you a few questions, and after getting the correct information, it calculates the amount you can earn per child. 

Your child needs to pass seven child tax credit calculator tests before claiming the CTC. That is as follows:

If your child meets the criteria, then according to the Child tax credit payment calculator, they are a qualified child. 

It's easy. Open the calculator over the internet. You will find two options when filling:

2020 child tax calculator 

2021 child tax credit calculator

Both are according to your year of tax returns. Select one of them and then fill in the following details:

Answer these questions, and you will get the maximum child credit.

The Fate Of Child Credit Tax In 2022

According to the 2021 child tax credit calculator, the CTC amount was $3000-$3600. But as this act was limited to December 2021, starting from 2022, the rules and regulations of CTC 2020 will be applicable. 

According to the 2020 child tax calculator, the amount has been revised back to $2000. Moreover, the advance payment option is no longer viable. And the CTC filer family should have a net income specified according to the government.  

However, the child tax credit refundability remains the same.

CTC has proved to be a beneficial activity that has made a big difference and helped many families raise their children. So if you are eligible and have estimated the amount with the help of a child tax credit calculator, then we recommend filing for the claim as it can prove to be a significant help.

Frequently Asked Question

The income threshold for parents of eligible children should be less than $200,000 if single parents. And if the couple is filing jointly, it should be $400,000. If the filer is making more than this, then 50 cents will be deducted per $1000  he makes.

Yes, the child tax credit is refundable. Before 2017 it was partially refundable. But after 2021, it was termed as fully refundable, and the families can claim their refund.