Parents can expect to see less money in child tax credits this year. Instead, the tax law is going back to the way it was before the pandemic.
Last year, eligible families received $3,600 for kids five and under. They also got $3,000 for older kids. It will now be $2,000 for eligible children under age 17. The credit is also considered non-refundable.
Daycare tax credits are also non-refundable this tax season. Albrecht explains that last year’s policies were only temporary.
“These credits have been in place for a long time. It’s just that in that one year, 2021, it was totally different. And now we’re back to the way it was for the longest time,” he said.
Parents may be able to earn the Additional Child Tax Credit – which allows a portion of the child tax credit to be refunded in cash.