2023 TAX YEAR
•The tax year 2023 maximum Earned Income Tax Credit amount is $7,430 for qualifying taxpayers who have three or more qualifying children, up from $6,935 for tax year 2022.
Maximum Credit Amounts
The maximum amount of credit tax year 2023:
No qualifying children: $600 (must be between ages 25-64)
1 qualifying child: $3,995
- 2 qualifying children: $6,604
3 or more qualifying children: $7,430
•Child Tax Credit still applies at $2,000 for each child age 16 and under (with the refundable portion being raised to $1,600 for 2023).
•Dependent Care expenses still applied for age 12 and under. 1 qualifying child max $3,000 and $6,000 max more than 1 qualifying child
•The standard deduction for couples Married Filing Jointly for tax year 2023 rises to $27,700 up $1,800 from the prior year. For Single taxpayers and individuals Married Filing Separately, the standard deduction rises to $13,850 for 2023, up $900, and for Heads of Households, the standard deduction will be $20,800 for tax year 2023, up $1,400 from the amount for tax year 2022.
•Education Credit no change
•You must have income on your return to receive any type of refund
2022 TAX YEAR
-The”Covid 2019 lookback provision” will no longer be available to use as earn income
-Child Tax Credit will return to the 2020 laws of $2,000 per child and $1,400 of that being refundable.
-Child Tax Credit max age will no longer be 17. This will return to the 2020 law with the max age was 16 for kids 16 on December 31, 2022
-Earned Income Credit for single taxpayers without kids will return to 2020 law rules of 25 years of age and over and no longer 19 years of age and over
-No stimulus credits are available to be claimed for the 2022 tax year
-Dependent Care Credit or Daycare Credit will no longer be 50% refundable. The 2020 tax laws apply with 20%-30% being refundable and $3000 for 1 child or $6000 for 2 children
-Multiple people can file Head of Household