The $3,600 enhanced child tax credit will hit the tax returns of millions of Americans this year as the IRS warns about a letter you must keep to file your tax return.
Americans around the country should be diligent about monitoring their mail over the next few days, IRS urged.
Letters from the IRS will be sent to approximately 36 million Americans this tax season.
From this letter, the taxpayer will be able to determine the amount child tax credit they are eligible to claim.
Every individual American taxpayer, including married couples filing jointly, will receive this letter by the end of January.
It will state how many child tax credits they claimed in 2021 and the number of children paid used to determine this number.
The letter may also be used to determine if you are eligible to claim Refund Credit on your 2021 tax return.
A child tax credit of up to $3,600 is eligible to be claimed, depending on your family circumstances.
US taxpayers are advised to keep this letter and any other letters received from the IRS regarding tax credits for their children or tax records for 2021.
Taxpayers will receive this letter from the IRS at the end of the month via the United States Postal Service.
The majority of families with dependent children under 6 years of age received a monthly payment of $250 between July and December of last year.
Read ours Child tax credit live blog for the latest news and updates…
Meanwhile, families with children ages six to 17 will receive a monthly payment of $300 per child.
The payouts add up to $1,800, or half of the entire $3,600 payout.
As a result, families in these circumstances will be eligible to claim a second $1,800 once they have completed their 2021 tax return.
Meanwhile, families who don’t receive the monthly payment may be eligible to claim the full $3,600.
Those who do not receive an advance payment or do not receive the full amount of payment for which they are eligible will be able to claim the remaining amount on their tax return.
No family should expect a monthly payment for January, however, double payment can be expected in February.
The White House press secretary, Jen Psaki, said President Joe Biden was still working to repay the prepayments by 2022.
In 2021, Congress voted to increase the credit, temporarily changing the amount of the child tax credit to $3,600.
This adds $1,600 from the previous $2,000.
After that, the government started offering a $300 monthly payment for half of the credit owed.
These monthly advance payments take place from July to December.
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