Stimulus Update: Think You Can’t Claim the Child Tax Credit for 2022? Think Again

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The credit may have lost its boost, but it didn’t disappear. 

At this point, many people are deep in the throes of preparing their 2022 taxes. And you may be eager to eke out as much tax savings as possible.

The IRS has already warned taxpayers to expect smaller refunds this year. But claiming the right deductions and credits could help a larger refund land in your bank account.

Now you might assume that the Child Tax Credit isn’t a tax break you can claim for 2022. But actually, if you think that, you’re way off base — and you risk losing out on a giant tax benefit you’re entitled to.

The Child Tax Credit was alive and well in 2022

In 2021, the Child Tax Credit got a major boost as part of the American Rescue Plan, a massive stimulus package that also resulted in $1,400 checks. That year, the maximum value of the credit rose to $3,600 for children under the age of 6 and $3,000 for children aged 6 to 17.

The Child Tax Credit did not retain that boost in 2022, much to the disappointment of families all over the country (and a number of lawmakers as well). But that doesn’t mean the credit went away in 2022. And it’s important that families realize that they can, in fact, claim the Child Tax Credit on their 2022 tax returns.

Of course, the value of the Child Tax Credit isn’t the same for 2022 as it was for 2021. Last year, the Child Tax Credit’s maximum value was $2,000 for children of all ages. Also, unlike in 2021, the credit wasn’t fully refundable. Rather, only $1,500 was. This means that if you have no tax liability and are eligible for a full $2,000, the most you can get back is $1,500.

But still, given the way inflation has been surging and so many families have been struggling to make ends meet, it’s important that anyone eligible for the Child Tax Credit claim it on their 2022 tax return. It could make a huge difference, especially among filers who find that they owe the IRS money for underpaying their taxes last year.

Will the Child Tax Credit get a boost in 2023?

Lawmakers haven’t given up on fighting for a boosted Child Tax Credit once again. And so at some point, we could see the maximum value of the credit rise beyond $2,000. Whether that happens in 2023, however, is up in the air.

Although inflation is surging right now, some lawmakers might argue that boosting the credit will only make that issue worse by giving consumers more money to spend. Meanwhile, some lawmakers have proposed making a boosted credit more targeted so that any extra money it results in lands in the pockets of those who need it the most. But nuances like that are apt to be hard to implement, so it may be a while until we see the Child Tax Credit again become worth more than $2,000 per child.

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