Do not expect a large-to-normal tax credit for child care expenses: The huge expansion of the Credit (CDCTC) of 2021 was a one-time perk that would not return.

Credit – Which pays you back A part of whatever you spent on the decar Or disabled relatives, or other care DependentsA major, but temporary, was promoted as part of an epidemic relief bill, which came into force in 2021. Extension President Joe was a part of Biden’s US rescue plan and applies only to last year’s taxes.

Depending on your situation, this time the amount you get for CDCTC can be reduced by thousands of dollars compared to last year. The maximum value of the credit is now $ 1,050 if you have a dependent and $ 4,000 for $ 4,000 and $ 8,000 last year $ 2,100 for two or more.

Extended credit was one of a crowd of government programs, which gave cash directly to the houses, so that they could have a spike season in unemployment due to the Kovid -19 epidemic. Last year was tax refund Increased with hundreds of dollars On average due to new benefits. But as the economy opened again in 2022 and All the lost jobs lost in the epidemic came backThose excitement programs, including CDCTC, fell from the way.

In 2022, CDCTC allows you to claim expenses up to $ 3,000 if you are a person ($ 6,000 for joints filed jointly), and credits claim up to 35% of that, or 20% if your Adjusted gross income More than $ 43,000. This is a sharp decrease from 2021, when individuals can spend up to $ 8,000 for a person and up to 50% of up to $ 16,000 for a couple.

Is there a question, comment or story to share? You can reach Diccon at dhyatt@thebalance.com.