Changes to several tax credits and contributions.
Change | 2021 | 2022 |
---|---|---|
Economic Impact Payments | None – No economic impact payments to individuals | 3 Rounds of Economic Impact Payments to Individuals in 2020 - 2021 |
Child Tax Credit | $2,000 per qualifying child under up to age 16 | $3,000 per child, $3,600 for under age 6, include age 17, plus advance payment of half the amount Jul – Dec 2021 |
Child and Dependent Care Assistance Credit | Nonrefundable (i.e., limited to tax liability). Max credit percentage dropped to 35%. Full credit available to taxpayers with AGI of $15,000 or less | Refundable tax credit. For 2021, max credit percentage was 50%; full credit available to taxpayers with AGI of $125,000 or less |
Earned Income Tax Credit | Credit percentage for childless earners reverts back down to pre-pandemic rates (7.65%), and ceiling of earned income is lower ($7,320) | The credit percentage was increased for Childless income earners (15.3%) – maximum credit was larger and ceiling for eligible earned income was higher($9,820) |
Charitable contributions for non- itemizers | No above the line deduction- only itemized deduction | $300 above the line deduction (2020) increased to per person in 2021 ($600 MFJ) |
Employer Provided Child Care | $5,000 in employer provided childcare is excluded from income (Cafeteria Plan) | $10,500 employer provided childcare is excluded from income (Cafeteria Plan) |
Healthcare Premium Tax Credit | Reverts to pre- pandemic rules. Eligibility is based on household income relative to the federal poverty limit | Health Insurance premium credit expanded to include individuals receiving unemployment compensation |