The Child Tax Credits (CTC) are set to revert to a maximum of $2,000 next year, what was offered before the 2021 expansion.
That means for this 2022 tax year, the money will be distributed in the form of a single end-of-year tax credit, per the previous program from the Internal Revenue Service (IRS).
"As part of our historic commitment to the largest tax relief in our state’s history, we are proud to provide tax relief to New jersey families right now," says @ASWReyJackson on legislation ensuring a child tax credit is available in 2022 pic.twitter.com/JnqMUNF8Bj
— NJ Assembly Democrats (@njassemblydems) October 3, 2022
This will either reduce the size of the recipient’s tax bill, or increase their tax refund.
Children must be age 16 or younger to be eligible for the support, and the modified gross income (AGI) cannot exceed $400,000 on a joint return and $200,000 on a single or head-of-household return.
The 2021 expanded child tax credit helped temporarily increase federal spending on children as a percentage of GDP, as illustrated in the @urbaninstitute Kids Share 2022 report. But the increase was temporary. https://t.co/Bft1xwf6Ry pic.twitter.com/073iNnFVj3
— Tax Policy Center (@TaxPolicyCenter) October 3, 2022
Above those incomes, a $50 decrease would ensue for every $1,000 in additional income.
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