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Planning Tips

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The child tax credit and the credit for other dependents should be factored into income tax withholding from paychecks to enjoy the tax savings throughout the year. The amount of the child tax credit in 2022 will be lower unless Congress makes a change. But you may still file a new Form W‐4 with your employer to factor in the applicable child tax credit into your withholdings for the year.

If you know you will become entitled to claim the credit (e.g., you expected the birth of a child), you may wish to adjust your withholding so that you don't have too much income tax withheld from your paycheck. Increase your withholding so that less income tax is withheld from your pay by filing a new Form W‐4, Employee's Withholding Certificate, with your employer. There is a Tax Withholding Estimator at https://www.irs.gov/individuals/tax-withholding-estimator to help you complete Form W‐4.

If you can't claim a credit for a qualifying child because the child doesn't have a valid Social Security number, you may be able to claim the credit for a qualifying dependent. For example, if there is another taxpayer identification number (e.g., Adoption Taxpayer Identification Number, or ATIN), you may be eligible for the $500 credit.

J.K. Lasser's 1001 Deductions and Tax Breaks 2022

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