Child Tax Credit 2022: What You Need To Know Before July 31 To Get Assistance for American Families

Following the failure of President Joe Biden's Build Back Better strategy in Congress earlier in 2022, ten states are giving financial assistance to families.

After the passage of the American Rescue Plan Act in 2021, the current Child Tax Credit (CTC) was increased to $3,000 for children under the age of 18 and $3,600 for children under the age of six.

Child Tax Credit has now been reduced to a limit of $2,000 per child, causing many families to struggle to make ends meet.

States Offering Child Tax Credits in 2022

Meanwhile, 10 states are granting tax credits, with the amount of the benefit and qualifying restrictions varying by state, mostly based on the age of the children and household income.

Per MARCA, payments of $1,000 to each family earning less than $25,000 and less than $1,000 to each family earning between $25,000 and $30,000. From January 2023, each qualified child in Colorado will get between 5% and 30% of the federal credit, depending on income and filing status.

Idaho will also provide $205 for each qualified child as specified by Internal Revenue Code section 24. Each Maine household will get $300 for each qualified kid and dependent as part of the Dependent Exemption Tax Credit.

Furthermore, each Maryland household with a gross income of $6,000 or less and each child under the age of 17 with a disability will receive $500. Massachusetts households will also receive $180 for one dependent and $360 for two or more.

Each family in New Mexico will receive $75 to $175 for each minor child who qualifies for federal income tax purposes. Finally, the amount is greater than 33 percent of the portion of the federal child tax credit and federal additional child tax credit attributable to qualifying children or $100 multiplied by the number of qualifying children, according to the official website of the state of New York.

Connecticut Offers Child Tax Rebate

Rep. Sean Scanlon, a Guilford Democrat who pioneered the program in the legislature, reported Wednesday that more than 90,000 Connecticut households applied for the state's new child tax refund in the first week.

According to Scanlon, the 90,320 applications would benefit 144,313 children from low- and moderate-income families. He also introduced a new coalition of nonprofit service providers to assist families with the application process, which is available through July 31, WSHU reported.

The $250-per-child refund, which the Department of Revenue Services is slated to pay out in August, is projected to benefit around 350,000 Connecticut households, according to state officials. The maximum payment per household is $750.

If two-thirds of the 350,000 homes receive the reimbursement, Scanlon believes it will be a "great victory." It is open to single parents earning less than $100,000 in 2021 and two-parent households earning less than $200,000.

Don't Miss Processing CTC Until July 31

Anyone from Connecticut who reported at least one dependent under the age of 18 on their federal income tax return for the year 2021 may be eligible. You can get up to $250 for each child. However, with three children, the advantage reaches its maximum. Income and filing status are other eligibility factors:

• Individuals filing separately, whether single or married, must have an income of less than $100,000.
• $160,000 for the head of household
• $200,000 for married couples filing jointly.

Even if you earn more than the maximum, you may be eligible for a reduced rebate. If you want to apply for the rebate, you should do so through the Connecticut Department of Revenue Services. The application period will run from June 1, 2022, through July 31, 2022. Starting in late August, eligible applicants should get their payments, as per FingerLakes1.

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