What You Need to Know This Tax Season
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The 2022 tax filing season opened on January 24 and will close on April 18.
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The IRS is encouraging people to file electronically and as early as possible.
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Opting for direct deposit will help you get any refunds faster.
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The IRS Free File Program is available to tax filers who earned $73,000 or less in 2021.
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Visit the IRS website (irs.gov) for free services, helpful checklists, and FAQs.
Tax Credits in the American Rescue Plan
The American Rescue Plan, passed in March 2021, included a third stimulus check and three major tax cuts for working families.
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Earned Income Tax Credit (EITC): Increased from $543 to $1,502. This is a fully refundable tax benefit that helps many low- and moderate-income workers. For the first time, in 2021 the EITC is available to younger workers and now has no age limit cap. For 2021, the EITC is generally available to filers without qualifying children who are at least 19 years old with earned income below $21,430; $27,380 for spouses filing a joint return. Learn more about the EITC.
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Child Tax Credit (CTC): Increased from $2,000 per child to $3,000 per child for children over the age of six and $3,600 for children under the age of six, and raised the age limit from 16 to 17. For 2021, the CTC is fully refundable. The maximum credit is available to taxpayers with a modified adjusted gross income of up to: $75,000 for single filers and married persons filing separate returns, $112,500 for heads of household, and $150,000 for married couples filing a joint return or qualifying widows and widowers. Above these income thresholds, the excess amount over the original $2,000 credit is reduced by $50 for every $1,000 in additional modified AGI. The original $2,000 credit is reduced by $50 for every $1,000 that modified AGI is more than $200,000; $400,000 for married couples filing a joint return. Learn more about the CTC.
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Child and Dependent Care Tax Credit: Made more people eligible and increased the total credit to $4,000 for one qualifying individual and $8,000 for two or more. This credit is fully refundable for the first time in 2021. Learn more about the Child and Dependent Care Tax Credit.
Taxpayers who received the advance Child Tax Credit or third stimulus check in 2021 should receive correspondence from the IRS with more information on how to accurately file their upcoming returns.
Additional Child Tax Credit Information
Free Tax Help in PA-05
The IRS runs two programs that offer FREE tax help for taxpayers who qualify: Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE).
Find a provider near you at irs.treasury.gov/freetaxprep.
The local organizations listed below run VITA sites in our community and provide FREE tax assistance to eligible residents. Contact them to see if you qualify and schedule an appointment.
Community Action Agency of Delaware County, Inc.
610-883-4443
caadc.vita@gmail.com
caadc.org
Serves Delaware County residents only
Campaign for Working Families
215-454-6483
contact@cwfphilly.org
cwfphilly.org
Virtual tax prep is available 24/7 on the Campaign for Working Families website
