Download Child Tax Credit Calculator 2022 in Excel, OpenOffice Calc, and Google Sheets to easily calculate Child Tax Credit for 2022.
With the help of this template, you can check your eligibility for a Child Tax credit based on your Adjusted Gross Income(AGI) and also calculate the amount of the Child Tax Credit.
Moreover, this template consists of calculations of phaseouts for Child Tax Credit based on your AGI score.
Download Child Tax Credit Calculator 2022 (Excel, OpenOffice Calc, & Google Sheets)
We have created a simple and easy-to-use Child Tax Credit Calculator 2022 with predefined formulas and functions. Just insert the number of children in the respective cell and it will automatically calculate the Child Tax Credit for you. Moreover, it also consists of the Child Tax Credit Phaseout Table
Download by clicking below on the desired format:
Additionally, you can also download Federal Income Tax templates like Adjusted Gross Income Calculator 2021, Itemized Deduction Calculator 2022, Federal Income Tax Calculator 2022, Recovery Rebate Credit Calculator, Employee Retention Credit Calculator 2021, Paycheck Calculator, and IRS Compliant Mileage Log Template.
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Table of Contents
What is Child Tax Credit?
The Child Tax Credit is a provision for taxpayers given by IRS that helps to reduce tax liability based on your income. It is calculated based on the number of children dependents you have.
Moreover, CTC or Child Tax Credit starts decreasing as your income increases. If your income is high then you will not be eligible for this credit.
Generally, the child tax credit is for qualifying children under the age of 16. But in 2022, the government increased the credit amount for children under the age of 6 under the American Rescue Plan after the pandemic.
For 2022, there is only 1 type of Child Tax Credit:
- Credit for children under the age of 17
Previously the maximum age limit was 16 and there was no additional tax credit for children under the age of 6.
Furthermore, this child tax credit was partially refundable up to $1500.
Child Tax Credit 2022
For 2022, the Child Tax Credit is $2,000 for qualified children under the age of 17.
The Child Tax Credit is nonrefundable for tax years 2022, 2020, and earlier; if your credit exceeds your tax burden, your tax payment is lowered to zero, and any excess unused credit is lost. You may, however, be eligible to claim a refundable Extra Child Tax Credit for the unused portion.
- The Extra Child Tax Credit is refundable up to $1,500 per qualified kid in 2022.
- Fill out the worksheet on IRS Form 8812 to see if you qualify for this refundable credit.
Child Tax Credit 2022 Eligibility Criteria
There are 7 eligibility criteria to qualify for Child Tax Credit.
Age Criteria
To qualify for Child Tax Credit in 2022, your child must be under the age of 17 at the end of the year. Previously, it was available for children under the age of 16.
Relationship Criteria
You can claim the child tax credit if the child is:
- Your child.
- Stepchild.
- Foster Child living with you by a legal authority like a court or authorized agency
- Legally Adopted Child. You can claim the child on your tax return even if the adoption has not been finalized by the end of the tax year.
- Blood Relatives. Brother or sister, stepbrother, stepsister.
- Descendants of Qualifying people like nieces, nephews, and grandchildren if they qualify for other criteria.
Financial Support Criteria
To qualify for this criteria, the child has not provided for more than half of his or her financial expenses during the tax year.
Dependency Criteria
To claim a child as a dependent and get the child tax credit he or she must:
- Has to qualify the relationship criteria.
- He/She qualifies for the Age Criteria and must be a full-time student for at least five months of the year. If the child is permanently disabled, there is no age limit.
- The child must have lived with you for more than half the year.
- He/She must qualify for the Financial Support Criteria.
Citizenship Criteria
To qualify for the CTC, the Child must be a U.S. citizen, a U.S. national, or a permanent resident of the United States. Individuals born in American Samoa or the Commonwealth of the Northern Mariana Islands are considered “US nationals” for tax purposes.
Residence Criteria
To get the child tax credit, the child must have lived with you for more than half of the tax year.
IRS allows a few exceptions:
- A newborn baby before the 31 December of the tax year shall be considered to have lived with you for the entire year.
- Temporary absences from school, vacation, business, medical care, military duty, or imprisonment in a juvenile institution by you or the child are considered as time the child stayed with you.
- Children of divorced or separated parents are likewise exempt from the residence requirement.
Income Criteria
The IRS decides the amount of Child Tax Credit based on your Adjusted Gross Income(MAGI) and your filing status.
For 2022, you can claim the credit in full if your adjusted gross income is less than:
- $200,000 for single filers and Head of Household
- $400,000 for married couples filing jointly.
Above these income levels, the credit begins to phase out.
How to Use Child Tax Credit Calculator 2022?
This template consists of 2 sheets: Child Tax Credit Calculator 2022 and Child Tax Credit Phaseout Sheet.
Child Tax Credit Calculator
The Child Tax Credit Calculator consists of 2 sections: Eligibility Calculations and Child Tax Credit Calculations. Let us understand how to use this calculator in detail.
Eligibility Calculations
As we all know, the Child Tax Credit Eligibility requires MAGI calculations, this section calculates your Modified Adjusted Gross Income(MAGI).
It consists of the following heads:
AGI 2022 from line 11 of Form 1040
Foreign Earned Income and Housing exclusions
Foreign Housing Deduction
Excluded income from bona fide residents of Puerto Rico or American Samoa
Modified Adjusted Gross Income 2022
Insert the items applicable to you. Usually, very few people have Foreign Earned Income and other items. Thus, in such cases, your AGI will be your MAGI.
Child Tax Credit Calculations
This section calculates the Total Child Tax Credit Amount. It consists of the following heads:
No. Of Dependents Under Age 17
CTC Per Child Below Age 17
Total CTC for Child Below Age 17
Child Tax Credit 2022
Total Claimable Child Tax Credit Claimable on Tax Return 2022
First of all, insert the number of dependents against the respective age group.
Based on your MAGI, the Child Tax Credit amount will be decided. Hence, if your MAGI is above the phaseout limits then refer to the phaseout table sheet.
For every $1,000, your total credit per child decreases by $50 or a fraction thereof. Under this phaseout, your credit is not reduced below $2,000 per child.
If your MAGI is below the first phaseout limits, then refer to Child Tax Credit First Phaseout Table given in the section below.
In case your MAGI is above the second Phaseout limit then refer to Child Tax Credit Second Phaseout Table given in below table.
That’s it. The template will calculate the total amount of Child Tax Credit you are eligible for.
Child Tax Credit 2022 Phaseout Limits
Your Child Tax Credit will start to reduce, if your AGI exceeds the above-mentioned levels but is less than $400,000 for married filing jointly and $200,000 for all other filing statuses.
For every $1,000, your total credit per child decreases by $50 or a fraction thereof. Under this phaseout, your credit is not reduced below $2,000 per child.
Example
Status: Single Filer
Name: Mr. Smith John
MAGI: $210,000
Children Under the Age of 18 but above 6: 2
Allowed Child Tax Credit: $2,000 + $2,000 = $4,000
Income Above AGI Threshold: $210,000 – $200,000 = $10,000
Based on the rules, for every $1,000, $50 will be reduced but not below $2000.
That is ($10,000 / $1,000 = 10. For each $1,000, reduce $50)
Thus, Mr. Smith John’s credit for each child will be reduced by $500.
Actual Child Tax Credit: $1,500 + $1,500= $3,000.
Therefore, the taxpayer gets a $1,500 credit until his AGI is below $400,000 for married filing jointly and $200,000 for all other filing statuses.
Formula To Calculate AGI for Child Tax Credit
Adjusted Gross Income = Gross Income – Adjustments
Child Tax Credit 2022 Phaseout Table
The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2022 exceeds:
- $400,000 if married and filing a joint return; or
- $200,000 for all other filing statuses.
The phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that applies to you.
Source: www.IRS.gov
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Disclaimer: This article is for information and educational purpose. Information provided here shall not be treated as tax advice. Kindly consult a tax expert before filing your tax return.