Child Tax Credit 2022 update — Families can get direct payments up to $3,600 after IRS mistake – see if you are eligible


FAMILIES can grab payments of up to $3,600 from the increased Child Tax Credit in 2021 until November 17 due to an IRS mistake.

A recent report from The Treasury Inspector General for Tax Administration revealed that the Internal Revenue Service (IRS) failed to send the advance child tax credits to 4.1million households, worth a total of $3.7billion.

Plus, from July to December 2021, 11.5million households received cash when they shouldn’t have.

For 2021, couples qualified for the full benefit if they made less than $150,000 and single parents who filed as the head of their household needed to make under $112,500.

If you meet these income restrictions, you have two options.

The first can be done by entering the number of children and dependents you have on form 1040 while doing the same on the attached document Schedule 8812.  

The second option applies to parents who don’t make enough money to file taxes and you must go to and apply through the portal.

Read our child tax credit live blog for the latest news and updates…

  • Lawmaker calls for childcare facilities for military

    Senator Jon Ossoff is sponsoring legislation that would improve child-care facilities across the military.

    The legislation would upgrade barracks and daycares across the military and address maintenance issues at those facilities.

    The Senate is likely to look into this in mid-November, according to News3.

  • The Preschool Promise program

    The Preschool Promise is a publically-funded program provides free, high-quality preschool to Oregon families with children ages 3-4 living at or below 200 percent of the Federal Poverty Level.

    The programs include child care centers, homes, culturally specific programs, Head Start programs, school districts, educational service districts, and community-based organizations.

  • Oregon childcare centers awarded grants

    Four new early childhood education programs and two existing programs received grant funding from The Oregon Department of Education’s Early Learning Division (ELD).

    This will add additional slots to the Preschool Promise childcare programs.

    According to CCC News, the following grants are given to:

    • Ana Rivera’s Bilingual Preschool and Child Care, a home-based program in The Dalles received 10 slots
    • Petersburg Preschool, a center-based program through the Columbia Gorge ESD in The Dalles received 18 additional slots plus 12 more slots through Mid-Columbia Children’s Council.
    • Mid-Columbia Children’s Council (MCCC) a center-based program at Mid Valley Elementary School in Hood River received 12 additional slots and Westside Elementary received 12 slots
    • Kiddie City, a center-based program in Parkdale received 10 slots
    • Little Minnows Preschool within the South Wasco County School District in Maupin received 10 slots
  • Maryland and its $500 payments

    Maryland residents with an adjusted gross income (AGI) of less than $6,000 can get $500 per child in state child tax credits.

    The credits are available to families with kids below the age of 17.

    There is no limit on the number of qualifying children for which the credit may be claimed.

  • The Mississippi Low-Income Childcare Initiative

    The initiative is a statewide non-profit working to strengthen women’s economic security in Mississippi.

    This is done by making child care affordable for low-income working moms, achieving gender and racial equity in the workforce.

    In a written statement to the Mississippi Senate hearing, the initiative’s recommendations include:

    • Reducing the mounds of red tape single mothers face in enrolling in and staying in the federally funded Child Care Payment Program
    • Mississippi using “every dollar it can” on childcare assistance to serve more families
    • Extending postpartum Medicaid for new moms from the current two months to 12 months
  • Child Tax Credits in Oklahoma

    Families in Oklahoma can choose between a nonrefundable credit worth 5 percent of the federal CTC or a nonrefundable credit worth 20 percent of the federal Child and Dependent Care Tax Credit.

    The credits are limited to taxpayers with incomes under $100,000.

    The credits are nonrefundable.

  • 12,000 Mississippi families will lose childcare

    During a Senate hearing, Bob Anderson, the executive director of the Mississippi Department of Human Services, said 12,470children in Mississippi will lose childcare spots in September 2024 as federal funding will end.

    The Mississippi Department of Human Services has been using most of its federal Covid-19 relief funds to open more spots in child care for poorer parents working in low-paying jobs, in school, or looking for employment.

  • What happens to CTC after 18?

    Under the American Rescue Plan‘s policies, families with a child 17 or younger were eligible for the full child tax credit.

    In 2021, 18 was the cutoff for CTC eligibility.

    Moving forward from 2022, child tax credit payments only apply to families with children 16 and younger.

    If a child is 17 or will turn that age before the end of the year, they are no longer eligible to receive a child tax credit payment.

    Typically, the IRS adjusts the age of each dependent in a household based on the previous year’s tax return.

  • CTC and non-tax filers

    Individuals earning $12,500 or less or couples who earn 25,000 or less are not required to file their taxes.

    The same goes for senior citizens who only receive Social Security.

    However, non-filers may still be eligible to receive benefits.

    Non-filers interested in claiming their child tax credit can use the portal tool to determine their eligibility.

  • Children of military personnel living overseas

    Most people who get Supplemental Security Income (SSI) and leave the US for 30 days or more are no longer eligible for SSI.

    However, a special rule for the children of military personnel. A child may continue to get SSI benefits or apply for benefits while overseas if the child:

    • Is a citizen of the US
    • Is living with a parent who is a member of the US Armed Forces assigned to permanent duty ashore anywhere outside the United States
  • Childcare providers in Kansas receive aid

    Funds of $2million were just approved by the Johnson County, Kansas, Board of County Commissioners in order to combat the cost of childcare centers.

    The money will go towards things like helping to pay for licensing, business development, training staff, and other business costs.

  • Wisconsin scores $15million childcare grant

    Early childcare centers in Wisconsin recently received $15million for the early childhood education workforce, to boost access and provide affordable childcare for working families.

    Governor Tony Evers and the Wisconsin Department of Workforce Development (DWD) are working together to help the state.

    “Increasing access to quality, affordable childcare and early childhood education is one of the best ways we can do what’s best for our kids, support Wisconsin’s working families, and reduce barriers for folks who want to join our state’s workforce—all at the same time,” Governor Evers told WIS Politics.

  • Both parents claiming CTC, continued

    Those who claimed a dependent on their 2020 taxes automatically received advance payments, unless they opted out.

    That means in situations where parents alternate claiming their child as a dependent each year, both parents may receive the child tax credit this year.

    However, both parents may not be able to benefit from the credit.

    If you claimed your child as a dependent in 2020 and received advance payments in 2021, you may be required to return those advance payments if your co-parent plans to claim the full credit on their tax return.

  • Both parents claiming CTC

    Typically, only one parent can claim a dependent on their taxes.

    Technically, married couples filing a joint return are both “claiming” the credit, as they share the benefits.

    If a married couple files separately, one parent can claim half of the child tax credits and split the benefit.

    Divorced, separated, or unwed couples must determine which parent will claim the child as a dependent each year.

  • Americans will see $500 from new UBI

    Those who were accepted for Evanston, Illinois, universal basic income pilot are set to their first payment in days.

    From the program, 150 households stand to receive $500 per month for a year.

    To be eligible, you must live in an Evanston household with income at or below 250 percent of the federal poverty line, and fit into one of the groups below:

    • Adults 18-24 years old
    • Adults 62 years old and older
    • Undocumented community members

    For a one-person household, the 250 percent threshold is $33,975 and for a two-person household, the figure is $45,775.

    Applications closed in August and cash will start going out to participants on Tuesday, November 1, according to local news outlet Evanston RoundTable.

  • Colorado will vote on free student lunches

    Proposition FF would raise taxes by an estimated $100million in the next full fiscal year and aims to expand funding for school meals.

    The wealthiest Coloradans would be the ones directly impacted.

    If passed, taxpayers with incomes of $300,000 a year or more would pay about $884 more in taxes, according to an analysis by nonpartisan legislative staff.

    Taxpayers with lower incomes would not be impacted.

  • Nevada childcare ARPA funds, part three

    The list continues:

    • Little Hands Learning Center Washoe County; 130 seats; $900,000
    • Small Strides, Inc. Washoe County; 154 seats; $785,000
    • Little Steps Early Learning Academy, LLC Clark County; 150 seats; $3.1 million
    • Kiddie Academy of Henderson (Jerrico Holdings, LLC) Clark County; 215 seats; $1.7 million
    • Shenker Academy (Temple Sinai) of Las Vegas Clark County; 55 seats; $700,000
    • Little Timbers Academy Carson City; 133 seats; $910,000
    • Our Second Home Daycare, LLC Lyon County; 175 seats; $217,000
    • Community Chest, Inc. Storey County; 50 seats; $989,000
    • Under the Magic Pine Tree (Timberhouse, LLC) Douglas County; 40 seats; $996,000

    Plus, $50million will be given to help expand funding for the state’s Child Care and Development Program.

  • Nevada childcare ARPA funds, continued

    Funding will cover the initial investment in the construction of the new expansion of childcare facilities and remodels/renovations of existing facilities.

    According to ABC8, schools in the following communities will be getting funds:

    • Community Chest, Inc. Mineral County; 50 seats; $977,000
    • The Hills Preschool (B4HA) Clark County; 275 seats; $3.5million
    • Boys and Girls Club of Truckee Meadows White Pine County; 70 seats; $545,000
    • Super Genius Kid Center (Universal Children Creations Art Academy, Inc.) Clark County; 300 seats; $6million
    • Children’s Learn and Play, LLC Clark County; 175 seats; $3.2million
    • Foundation for Positively Kids Clark County; 170 seats dedicated for Children and Youth with Special Health Care Needs; $2.5 million
    • Kiddie Academy of South Reno (Ethereal Holdings, Inc.) Washoe County; 174 seats; $788,000
    • Kids R Us Hippity Hop Learning Center Washoe County; 46 seats; $834,000
    • Alphabet Academy Washoe County; 78 seats; $992,000
  • Nevada childcare ARPA funds

    Money from the American Rescue Act Plan will be given to the state of Nevada to expand childcare capacity.

    The grants from the Capital Expansion will add 2,440 new childcare seats throughout Nevada by 2027.

    The new seats will be for 18 childcare centers, hoping to alleviate concerns for families.

    The $30million is part of a larger package passed this May for $160million.

  • Tax credit helps make college more affordable, continued

    While the Lifetime Learning credit is:

    • Worth a maximum benefit of up to $2,000 per tax return, per year, no matter how many students qualify
    • Available for all years of postsecondary education and for courses to acquire or improve job skills
    • Available for an unlimited number of tax years

    The taxpayer or the dependent must have a Form 1098-T, Tuition Statement in order to receive this credit.

    There are exceptions for some students who must complete Form 8863, Education Credits, and file it with their tax return.

  • Tax credit helps make college more affordable

    The American Opportunity credit and Lifetime Learning credit can help offset the costs of higher education.

    Eligible taxpayers who paid for themselves, their spouse, or dependents to attend college in 2021 can qualify for these credits.

    The American Opportunity credit is:

    • Worth a maximum benefit of up to $2,500 per eligible student
    • Only available for the first four years at a post-secondary or vocational school
    • For students pursuing a degree or other recognized education credential
    • Partially refundable; Taxpayers could get up to $1,000 back
  • Universal Preschool Strategic Plan

    As childcare becomes somewhat of a crisis, the state of New Jersey has made investments in preschool programs.

    The Governor extended support for New Jersey’s preschool infrastructure through $150million in federal funding.

    This was allocated through the Fiscal Year 2023 (FY23) budget for early childhood and child care provider facilities.

  • Rhode Island to announce first round of grants

    Rhode Island lawmakers are set to announce the first round of grantees for the Early Childhood Care and Education Capital Fund.

    The Early Childhood Care and Education Capital Fund’s $15million budget was voted on last year and will help fund capital improvement and expansion projects at childcare facilities statewide.

    The first round of grantees is set to score $8.5million in funding.

  • North Country childcare score federal funding

    New York Governor Kathy Hochul awarded 18 childcare providers in the North Country federal funding.

    The money will help increase capacity at existing state-licensed, registered, or permitted childcare programs.

    $30million will go to 418 child care programs in underserved locations in the state and $779,500 of them were awarded to 18 programs in the North Country.

  • NJ Childcare centers and their $200,000 grants

    The New Jersey Economic Development Authority (NJEDA) will start accepting applications for grants from the $54.5million New Jersey Child Care Facilities Improvement Program on Tuesday, November 15, 2022. 

    The New Jersey First Lady Tammy Murphy announced it will happen in phases to support the state’s child care sector.

    Phase 1 will provide nearly $15million in grants of up to $200,000 to licensed childcare centers in New Jersey to cover the costs of facility improvements.

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