By Reagan Van Coutren, 2022 Get It Back Campaign Intern
The government expanded the Earned Income Tax Credit and Child Tax Credit during 2021 to provide on-going relief due to the COVID-19 pandemic. The expansions made the tax credits available to more people than ever before.
Since these expansions have ended, the value of these credits has gone back to pre-pandemic amounts. This means that your tax refund this year may be smaller compared to last year.
Click any of the following links to jump to a section:
- Earned Income Tax Credit (EITC) changes
- Child Tax Credit (CTC) changes
- Is it too late to claim the 2021 expanded EITC or CTC?
- Resources
Earned Income Tax Credit (EITC) changes
What is the EITC?
The EITC is a tax credit for people with low to moderate incomes. The money from this credit can help pay for essentials such as transportation, groceries, and bills.
Who Qualifies for the EITC?
The EITC amount depends on your income, marital status, and family size.
To claim the EITC, everyone listed on the tax return must have a valid Social Security Number.
A comparison of credit eligibility and value in 2021 and 2022 is shown below.
The Earned Income Tax Credit in Tax Year 2021 & 2022
| Number of children: | Single workers with income less than: | Married workers with income less than: | 2021 EITC up to: | 2022 EITC up to: |
| 3 or more children | $53,057 | $59,187 | $6,728 | $6,935 |
| 2 children | $49,399 | $55,529 | $5,980 | $6,164 |
| 1 child | $43,492 | $49,622 | $3,618 | $3,733 |
| No children | $16,480 | $22,610 | $1,502 | $560 |
*Note: You cannot get the EITC if you have investment income of more than $10,300 in 2022 or $10,000 in 2021. Investment income includes taxable interest, tax-exempt interest, and capital gain distributions.
What’s different about the EITC for 2021 vs. 2022?
The 2021 expansions to the EITC helped people without children. In addition to the credit value being higher ($1,502 in 2021 vs. $560 in 2022), the age requirement changed. Normally you must be between the ages of 25 and 64 to claim the EITC if you don’t have children. This is the rule for 2022. In 2021, some people ages 19-24 and over 65 were also eligible for the credit.
Child Tax Credit (CTC) changes
What is the Child Tax Credit?
The Child Tax Credit helps offset the costs of raising children. People with lower, moderate, and higher incomes may claim this credit. The money from this tax credit can help pay for food, childcare, school supplies, and more.
Who Qualifies for the CTC?
The CTC amount depends on your income and the number of eligible kids you have. Only part of the credit is refundable and will provide money back.
To claim the CTC, children must have a valid Social Security Number (SSN). The tax filer can have an SSN or an Individual taxpayer Identification Number.
A comparison of credit eligibility and value in 2021 and 2022 is shown below.
The Child Tax Credit in Tax Year 2021 & 2022
| 2021 CTC: | 2022 CTC: | |
| Age of child | Children 17 and under qualify | Children 16 and under qualify |
| Credit amount | Up to $3,600 per child under age 6
Up to $3,000 per child age 6-17 |
Up to $2,000 per child |
| Refund amount | $3,600 per child under age 6
$3,000 per child age 6-17 |
$1,500 per child |
| Income | There is no income requirement to claim the credit | You must earn more than $2,500 to get the refundable part of the credit |
What’s different about the CTC for 2021 vs. 2022?
The 2021 CTC expansions made the CTC larger and available to more families. The CTC is worth up to $2,000 per qualifying child in 2022. Up to $1,500 is refundable. In 2021, the CTC was worth up to $3,600 and the full credit was refundable. To get the refundable part in 2022, you must earn at least $2,500. You could qualify for the 2021 CTC even if you didn’t have recent earnings.
In 2022, children must be 16 or younger to be claimed for the credit. Children aged 17 qualified for the 2021 expanded CTC.
Is it too late to claim the 2021 expanded CTC and EITC?
No! Tax credits can be claimed for up to three years past their original due dates. The EITC and CTC were expanded for 2021 due to the pandemic.
If you were eligible for these credits and didn’t claim them, it’s not too late. File your 2021 federal tax return by April 18, 2025, which is three years after the original due date.
Resources
- What You Need to Know about Filing Taxes in 2023
- EITC Estimator
- 2023 Tax Season Tips – Internal Revenue Service (IRS)
