The IRS began sending out Child Tax Credit payments to eligible parents in July and will continue to do so through December. Be wary of any calls, emails, or texts about the payments claiming to be from the IRS – the agency warns that scammers are already trying to con people out of their payments.
These payments made this year are advance payments for 50% of the estimated 2022 Child Tax Credit, which has been substantially expanded over prior years. The estimates and payments are based on previously filed tax returns. Under the 2022 Child Tax Credit, parents with children as old as 17 will qualify for the credit. In addition, the credit is increased to $3,000 per child or $3,600 per child under age six for families under certain income thresholds. The 2022 Child Tax Credit is also fully refundable and there is no minimum earnings requirement.
The IRS has created a portal for the Child Tax Credit where parents may opt-out of advance payments and update bank account information.
Separated parents would be well advised to check on the status of the payments and make certain the parent who is entitled to the credit is the one receiving the funds.
Staying informed about changes to family law in Connecticut is an important part of our commitment to doing all that we reasonably can to help our clients plan for and emerge positively from the divorce process. If you or someone you know is interested in learning more, please reach out.