{"id":6484,"date":"2023-01-15T05:28:15","date_gmt":"2023-01-15T05:28:15","guid":{"rendered":"https:\/\/www.irstaxapp.com\/?p=6484"},"modified":"2023-01-15T05:30:18","modified_gmt":"2023-01-15T05:30:18","slug":"refundable-tax-credits-2022-2023","status":"publish","type":"post","link":"https:\/\/www.irstaxapp.com\/refundable-tax-credits-2022-2023\/","title":{"rendered":"List of 4 Refundable Tax Credits for Tax Year 2022 &#038; 2023"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large is-resized\"><picture><source srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-1024x576.webp 1024w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-300x169.webp 300w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-768x432.webp 768w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-150x84.webp 150w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-750x422.webp 750w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-1140x641.webp 1140w,https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits.webp 1200w\" sizes=\"(max-width: 1125px) 100vw, 1125px\" type=\"image\/webp\"><img src=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-1024x576.png\" height=\"632\" width=\"1125\" srcset=\"https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-1024x576.png 1024w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-300x169.png 300w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-768x432.png 768w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-150x84.png 150w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-750x422.png 750w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits-1140x641.png 1140w, https:\/\/www.irstaxapp.com\/wp-content\/uploads\/2023\/01\/refundable-tax-credits.png 1200w\" sizes=\"(max-width: 1125px) 100vw, 1125px\" class=\"wp-image-6492 sp-no-webp\" alt=\"refundable tax credits\" decoding=\"async\" loading=\"lazy\"  > <\/picture><\/figure>\n\n\n\n<p>A refundable tax credit is a type of tax credit that can be claimed by individuals or families who owe little or no income tax. These credits can be used to reduce the amount of taxes owed or, if the credit exceeds the amount of taxes owed, the individual or family may receive a refund for the difference.Here is a list of of four refundable tax credits available to individuals for tax year 2022 &amp; 2023.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-66294679aa0aa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-66294679aa0aa\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.irstaxapp.com\/refundable-tax-credits-2022-2023\/#Refundable_tax_credits_1_EITC\" title=\"Refundable tax credits 1:EITC\">Refundable tax credits 1:EITC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.irstaxapp.com\/refundable-tax-credits-2022-2023\/#Refundable_tax_credits_2_CTC\" title=\"Refundable tax credits 2:CTC\">Refundable tax credits 2:CTC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.irstaxapp.com\/refundable-tax-credits-2022-2023\/#Refundable_tax_credits_3_American_Opportunity_Tax_Credit_AOTC_%E2%80%93\" title=\"Refundable tax credits 3:American Opportunity Tax Credit (AOTC) &#8211; \">Refundable tax credits 3:American Opportunity Tax Credit (AOTC) &#8211; <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.irstaxapp.com\/refundable-tax-credits-2022-2023\/#Refundable_Tax_Credits_4_Premium_Tax_Credit\" title=\"Refundable Tax Credits 4: Premium Tax Credit\">Refundable Tax Credits 4: Premium Tax Credit<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Refundable_tax_credits_1_EITC\"><\/span>Refundable tax credits 1:EITC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Earned Income Tax Credit<\/strong> (EITC) &#8211; <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/32\" target=\"_blank\" rel=\"noopener\">IRC Section 32<\/a> lays down the law for eligibility and claim of the EITC is a credit for low-income working individuals and families. The amount of the credit varies based on income and number of children. Individuals who have earned income from employment or self-employment and have a valid Social Security number can claim maximum EITC as per the limit given below for t<strong>ax year 2022 <\/strong>&amp; <strong>2023<\/strong>:<\/p>\n\n\n\n<figure class=\"wp-block-table has-medium-font-size\"><table class=\"has-black-color has-text-color\"><tbody><tr><td><strong>No of Children<\/strong><\/td><td><strong>Maximum Tax credit <br>for Tax year 2022<\/strong><\/td><td><strong>Maximum Tax credit <br>for Tax year 2023<\/strong><\/td><\/tr><tr><td>0<\/td><td>$560<\/td><td>$600<\/td><\/tr><tr><td>1<\/td><td>$3,733<\/td><td>$3,995<\/td><\/tr><tr><td>2<\/td><td>$6164<\/td><td>$6604<\/td><\/tr><tr><td>3<\/td><td>$6,935<\/td><td>$7,430<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You can test our Earned Income Tax Credit and read detailed post with <a href=\"https:\/\/www.irstaxapp.com\/earned-income-tax-credit-calculator\/\">EITC Calculator for 2022 &amp; 2023<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Refundable_tax_credits_2_CTC\"><\/span>Refundable tax credits 2:CTC<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Child Tax Credit (CTC) &#8211;  The CTC is a refundable tax credit for each qualifying child under the age of 17. For tax year 2022, the maximum credit is $2,000 per child. <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-luminous-vivid-orange-color\">The child tax credit is partially <\/mark><\/strong><font color=\"#ff6900\"><span style=\"caret-color: rgb(255, 105, 0);\"><b>refundable<\/b><\/span><\/font> year 2022, meaning that families can receive up to $1,500 per child as a refund. To be eligible for the CTC, the child must have a valid Social Security number and be claimed as a dependent on the taxpayer&#8217;s return.[Refer <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/24\" target=\"_blank\" rel=\"noopener\">IRC Section 24<\/a>]. You can also  test our <strong><a href=\"https:\/\/www.irstaxapp.com\/2022-child-tax-credit-calculator\/\">child tax credit calculator<\/a><\/strong> for 2022 with detailed article.<\/p>\n\n\n\n<p class=\"has-black-color has-text-color has-background\" style=\"background-color:#d5ebf8\"><strong>Tax Year 2021<\/strong>&#8211; If for any reason you did not file tax return for 2021 and forgot to claim this refundable tax credit , it is suggested you file tax return and claim the refund .The American Rescue Plan (ARP) temporarily expanded by making more age group eligible for the&nbsp;<a href=\"https:\/\/www.irstaxapp.com\/2021-child-tax-credit-calculator\/\">Child Tax Credit<\/a>&nbsp;(CTC) and increased the partially refundable tax credit from $2,000 per child to as high as fully refundable $3,600 for the 2021 tax year. . But, before you count the tax credit per child, you need to examine if your <a href=\"https:\/\/www.irstaxapp.com\/child-tax-credit-eligibility-checker\/\">child is eligible for CTC <\/a>. Please <strong>remember for tax year 2022 , old rules  for the child tax credit apply.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Refundable_tax_credits_3_American_Opportunity_Tax_Credit_AOTC_%E2%80%93\"><\/span>Refundable tax credits 3:American Opportunity Tax Credit (AOTC) &#8211; <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The American Opportunity Tax Credit or  AOTC is a partially refundable tax credit for qualified education expenses for students in their first four years of post-secondary education. For tax year 2022, the maximum  AOTC credit is $2,500 per student. Up to $1,000 of the credit is refundable. To be eligible for the AOTC, the student must be enrolled at least half-time in a degree or certificate program, and must not have completed the first four years of post-secondary education before the tax year.[Refer <a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/25A\" target=\"_blank\" rel=\"noopener\">IRC Section 25A<\/a>]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Refundable_Tax_Credits_4_Premium_Tax_Credit\"><\/span>Refundable Tax Credits 4: Premium Tax Credit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IRC Section 36B lays down the basic lay about Premium Tax Credit (PTC) under which a fully refundable tax credit is allowed to help individuals and families afford health insurance purchased through the Health Insurance Marketplace. The amount of the credit is based on income and family size. To be eligible for the PTC, individuals must have an income between 100-400% of the federal poverty level and must not be eligible for other minimum essential coverage such as through an employer or government program.<\/p>\n\n\n\n<p>On August 16, 2022, the&nbsp;Inflation Reduction Act&nbsp;was signed into law by President Biden that enhanced PTC and also has made the healthcare more improving affordable by&nbsp;<a href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2022\/08\/15\/by-the-numbers-the-inflation-reduction-act\/\" target=\"_blank\" rel=\"noopener\">reducing premium costs of health insurance<\/a>&nbsp;for consumers.&nbsp;&nbsp;The new law also enhanced the  refundable premium tax credit (PTC) for individuals and families who are enrolled in a qualified health plan purchased on the state or federal exchange Marketplace, and who aren\u2019t eligible for other qualifying coverage or affordable employer-sponsored health insurance plans providing minimum value [IRC Sec. 36B(a)].<\/p>\n\n\n\n<p>When you go for tax filing for 2022 or 2023 , check if you are eligible for the aforesaid tax credit and do not forget to claim it. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>A refundable tax credit is a type of tax credit that can be claimed by individuals or families who owe little or no income tax. These credits can be used to reduce the amount of taxes owed or, if the credit exceeds the amount of taxes owed, the individual or family may receive a refund [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6492,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[31],"tags":[],"amp_enabled":false,"_links":{"self":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6484"}],"collection":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/comments?post=6484"}],"version-history":[{"count":4,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6484\/revisions"}],"predecessor-version":[{"id":6494,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/posts\/6484\/revisions\/6494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media\/6492"}],"wp:attachment":[{"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/media?parent=6484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/categories?post=6484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.irstaxapp.com\/wp-json\/wp\/v2\/tags?post=6484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}