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Boost your back-to-school budget by claiming these child-related tax credits

Posted on September 26, 2022

As kids head back to school each fall, parents are asked to purchase lots of items on their kids’ the school supply lists.

It’s good for your bottom line to know that you can boost your back-to-school budget by making sure you aren’t missing out on any 2022 refunds or tax credits. For instance, if you’re eligible for tax credits, like the child tax credit and the earned income tax credit, but not claiming these, you’re leaving money on the table.

How the child tax credit works 
The child tax credit gives families with qualifying children a tax break. You may be able to claim this credit even if you don’t normally file a tax return.

You qualify for the full amount of the 2021 child tax credit for each of your qualifying children if you meet all eligibility factors and your annual income isn’t greater than:

  • $150,000 if you’re married and filing a joint return, or if you’re filing as a qualifying widow or widower.
  • $112,500 if you’re filing as head of household.
  • $75,000 if you’re a single filer or are married and filing a separate return.

Parents and guardians with higher incomes may be eligible to claim a partial credit. Ask your CPA or use the IRS Interactive Tax Assistant as you file your taxes to check to see if you qualify.

How do you qualify for the EITC or earned income tax credit?
The earned income tax credit helps low- to moderate-income workers with families receive a tax break. The credit helps reduce the taxes you owe – and possibly increase your refund.

Low- to moderate-income workers with qualifying children may be eligible to claim this earned income tax credit if certain qualifying rules apply to them. Visit IRS.gov to learn how to claim the EITC without a qualifying child.

People who qualify for the EITC may also qualify for these other tax credits:

If after reviewing the requirements, you still have questions, feel free to ask our CPA team – whether or not you are a client of ours.