Thousands of families can now apply for the new Child Tax Credit payment.
The fresh credit is part of Connecticut’s 2022-2023 budget bill, which was signed into law by Governor Ned Lamont last month.
Those eligible for the credit are set to receive a maximum deductible of $250, capped at three children, for a total of $750.
To receive the maximum amount for each child, eligible recipients must meet the following income limits:
- Single or married filing separately must make $100,000 or less
- Head of household must earn $160,000 or less
- Married filing jointly has to make $200,000 or less.
Eligible families can apply Revenue Service Department Portal By clicking on “2022 CT Child Tax Rebate”.
Applications must be submitted by 31 July.
Vermont is another state that is taking matters into its own hands after Congress failed to extend the expanded child tax credit, which expired late last year.
Republican Governor Phil Scott A child tax credit of $1,000 was signed for each child under the age of five and families with an income of $125,000 or less.
Millions of other U.S. taxpayer parents nationwide will see the child tax credit return to $2,000 per child this year, in line with the program introduced before the 2021 expansion.
This means that in this 2022 tax year, the money will be distributed as a single tax credit at the end of the year, as per the previous schedule. Internal Revenue Service (IRS),
This will either reduce the size of the recipient’s tax bill or increase their tax refund.
Children must be 16 years of age or younger to be eligible for assistance, and modified gross income (AGI) cannot exceed $400,000 on a joint return and $200,000 on a single or household return.
Above those incomes, there would be a $50 reduction for every $1,000 in additional income.
How does it compare to 2021?
Only in 2021, the child tax credit was temporarily extended to a maximum of Rs. $3,600 per child under the President Biden plan.
Increased funds were distributed on a monthly basis to help ensure a more continuous flow of guaranteed income to struggling families.
From July to December 2021, eligible families received $300 per child under the age of six and $250 for children between the ages of six and 17.
To be eligible for the maximum credit, taxpayers’ AGI is required to be:
- $75,000 or less for singles
- $112,500 or less for head of household
- $150,000 or less for married couples and eligible widows and widowers filing joint returns
The US rescue plan, which was signed into law by President Biden in March 2021, was aimed at helping families amid rising costs and helping the US economy get back to health in the aftermath of Covid.
Democrats are pushing to increase credit, but many Republicans oppose the idea.
President Biden has previously called for extending child tax credit payments until at least 2025.
research from Center on Budget and Policy Priorities has found that the US rescue plan has helped reduce child poverty by more than 40%.
Sun has more on Connecticut’s Child Tax Credit Program.
We also specify which parents share joint custody of the children. All you need to know about paying the Child Tax Credit,
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