THE REVERE ADVOCATE – FRIDAY, JANUARY 27, 2023 RETIREMENT | FROM Page 1 CHILD TAX CREDIT FOR 2022 T he child tax credit in the amount of $2,000 per qualifying child is allowed for calendar year 2022. A qualifying child for purposes of the child tax credit is a child who: 1. is claimed as your dependent on your tax return; 2. was under the age of 17 at the end of 2022; 3. is your (a) son, daughter, adopted child, stepchild or a descendent of any of them (for example, your grandchildren); (b) brother, sister, stepbrother, stepsister, or a descendent of any of them (for example, your niece or nephew), whom you cared for as you would your own child; or (c) foster child (any child placed with you by an authorized placement agency whom you cared for as you would your own child, and 4. is a U.S. citizen or resident alien. An adopted child is always treated as our own child. An adopted child includes a child placed with you by an authorized placement agency for legal adoption even if the adoption is not final. An authorized placement agency includes any person or court authorized by state law to place children for legal adoption. Remember, the child tax credit is a dollar for dollar tax credit and not simply a deduction to be utilized in order to reduce your otherwise taxable income. It was the Tax Cuts and Jobs Act passed by Congress in 2017 that provided for the increase from $1,000 to $2,000. There is a $500 tax credit allowed for each qualifying child for whom the credit is not otherwise allowed and for each qualifying relative. An example might be a parent that you are caring for or a child who happens to be age 17 or older at the end of calendar year 2022. The child tax credit begins to phase out when modifi ed adjusted gross income reaches $400,000 for joint fi lers, and $200,000 for any other fi ling status. The tax credit is reduced by $50 for each $1,000 of income over these thresholds. A portion of the child tax credit is refundable for all his stripes and was promoted to Sergeant. He attended traffi c school and studied accident reconstruction. In the years to follow, he took over the Traffi c Division, which was a true passion of his. Throughout all the titles he held and shifts he worked, Page 13 he always was prepared with a coff ee and his motorcycle. He’s served through fi ve decades, six US Presidents, under fi ve Mayors, seven Chiefs, nine MA Senators and four MA Representatives (the current, his favorite). As I refl ect on his service today, I am fi lled with gratitude. “Thank you, Dad, for being not only a role model for me, but for all the lives that you’ve impacted during your career with the Revere Police. Thank you not only as your Representative who is so grateful for everything you’ve done for the city of Revere, but thank you Dad, as your daughter who loves you to the moon and back.”—Jessica Giannino taxpayers, regardless of the amount of the taxpayer’s regular tax or alternative minimum tax liability. For calendar year 2022, the additional child tax credit is refundable in an amount equal to the lesser of the portion of the child tax credit the taxpayer cannot claim due to the tax liability limitation or 15% of the taxpayer’s earned income in excess of $2,500. If the taxpayer has 3 or more qualifying children, the threshold for the second calculation is the excess of the taxpayer’s share of social security taxes over his or her earned income credit, if that excess is greater than 15% of the taxpayer’s earned income over $2,500. The additional child tax credit may not exceed $1,500 per qualifying child under the age of 17. The $500 partial credit for any other dependent is not refundable. The additional child tax credit is claimed on Form 8812. Do not overlook this valuable tax credit when preparing your income tax return. It is a valuable “dollar for dollar” tax credit which can reduce your tax liability substantially. It is much more valuable than a “tax deduction” which will only serve to reduce taxable income. If, for example, you are only in a 22% tax bracket, a $1,000 deduction would save only $220 in taxes. The child tax credit as well as the additional child tax credit for 2022 is not as high as it was on the 2021 tax return. Congress increased the 2021 child tax credit to $3,600 for children under age 6 and $3,000 for children ages 6 to 17 due to Covid 19, but chose not to extend the increases for the 2022 calendar year. Joseph D. Cataldo is an Estate Planning/Elder Law Attorney, Certifi ed Public Accountant, Certifi ed Financial Planner, AICPA Personal Financial Specialist and holds a Master’s Degree in Taxation. Proud Giannino family members, pictured from left to right: nephew Nicholas Maglione, Sgt. Christopher Giannino, proud mom Joanne and daughter State Rep. Jessica Giannino at the Revere Police Public Safety Building on his last day following 33 years of dedicated service to the City of Revere. at 781-286-8500 or Info@advocatenews.net call he Adv cate Ne spapers For Advertising with Results, call The Advocate Newspapers
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