CHARLOTTE, N.C. — We are in the midst of tax season and in less than two months, taxes are due. Our Verify team has gotten a lot of questions about the changes this year in dependent care tax credits and childcare tax credits.
OUR SOURCES:
THE QUESTION:
Can you claim a non-relative dependent and receive a refund on your 2022 taxes without having an income?
THE ANSWER:
No, you can't claim a non-relative dependent and receive a refund if you don't have any income.
"The answer, for now, is no. They changed the rule for 2021, made it a much more expansive credit made it fully refundable but after 2021, the rule expired and reversed and reverted back to the pre-pandemic amount," Steber said.
THE QUESTION:
I haven't worked this year. Can I still claim a child tax credit?
THE ANSWER:
No, you can't claim a child tax credit if you didn't receive any income.
"Unfortunately, now the child tax credit does have both an income offset requirement to use most of the credit and to get the balance back, you still have to have some income," Steber said.
For 2021, the American Rescue Plan increased key credits to help families offset expenses associated with the pandemic. It also allowed families to claim credit, even if they did not have a minimum income. According to the Consumer Financial Protection Bureau, families must now earn at least $2,500 to get that credit.
"You can be self-employed, but you do have to have some income and some responsibility, at a minimum, some income to get a portion of that amount refundable," Steber said.
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
VERIFY is dedicated to helping the public distinguish between true and false information. The VERIFY team, with help from questions submitted by the audience, tracks the spread of stories or claims that need clarification or correction. Have something you want VERIFIED? Text us at 704-329-3600 or visit VERIFY.