J.K. Lasser's Your Income Tax 2022

CHAPTER 25Personal Tax Credits Reduce Your Tax Liability

In this chapter you will find discussions of personal tax credits other than education tax credits, which are discussed in Chapter 33.

For 2021, the child tax credit amount depends on the age of the qualifying child: up to $3,600 for a child from birth to under age 6, and up to $3,000 for a child age 6 to under age 18. There is an income phaseout, and if a residency test is met, the credit is fully refundable (25.2). If you received advance payments in monthly amounts from July through December 2021, these reduce the credit. If these advance payments exceed the amount to which you are entitled, you may have to repay the excess (25.3). There is also a nonrefundable credit for other dependents (25.4). And there is an additional child tax credit (25.3), which may be refundable for those who do not qualify for the fully refundable credit and meet certain conditions.

For 2021, the child and dependent care credit is up to $4,000 for one qualifying person or $8,000 for two or more qualifying persons (25.5). It is fully refundable. However, income limits apply; there is a two-stage phaseout of the credit.

The earned income credit (EIC) is provided to low-income workers who support children, and a limited credit is allowed to certain workers without qualifying children (25.6).

An adoption credit of up to $14,440 may be claimed on your 2021 return for costs of adopting a child under the age of 18 or a disabled person incapable ...