Some of the 2022 Tax Law Changes – there may be other qualifications, this is just a general explanation of changes.

Child tax credit for 2021

The child tax credit (CTC) was $3,000 for each child under age 18 or $3,600 for each child under age 6. It was a refundable credit.

Child tax credit for 2022

No longer fully refundable, the credit drops $2,000 per child and the year the child turns 17 they no longer qualify.

Daycare expenses for 2021

The dollar limit for eligible expenses – $8,000 for 2021 for one child and $16,000 for two or more qualifying children and was a 50% credit and was a refundable credit.

Daycare expenses for 2022

The eligible amount drops back down to $3,000 for one child and $6,000 for 2 or more qualifying children and is nonrefundable. The percentage rate dropped to 20% to 35% based on income. You may have been eligible for a credit on your 2021 return, but depending on your circumstances, it may be much lower on your 2022 return.

Earned Income Tax Credit (EIC) For 2021

You had the choice to use your 2019 earning or 2021 which ever gave you the bigger credit.  If you were not a dependent and your income was within the range allowed, you qualified if you were age 19 and older.

Earned income Tax Credit for 2022

For those with no children the age goes back to 25 and under 65 (younger if you have a child).  The credit is calculated using your 2022 earned income (earned income is W-2 wages of self employed income.)