Since the purpose of the Child Tax Credit is to help American families with lower incomes, it is not meant for people earning a lot of money. Those earning more than $400,000 if married and filing jointly or $200,000 for single filers will receive less than the maximum amount per child. The amount declines by $50 for every $1,000 over those income thresholds until it eventually phased out to nothing.
There are online calculators that can determine the exact amount of the Child Credit based on the number of children in each age range along with the taxpayers’ income.
Unlike in 2021, the Child Tax Credit benefits will not be dispersed to qualifying individuals over the course of a few months. Taxpayers will need to claim the credit while filing their 2022 tax return.
Taxpayers will get the money in the same way as they registered with the IRS in the previous tax year: either direct deposit or a paper check mailed to their address on file. Direct deposit information and addresses can be changed on the IRS’ Child Tax Credit Update Portal.