FAMILYS with children can expect a final child tax credit payment in the mail – but families have until tomorrow to make sure the IRS knows they qualify.
With the end of 2021 Child tax credit payments will be made on Wednesday, December 15, many qualifying families are now tasked with making sure they file their 2020 tax returns correctly by the new year.
However, financial experts warn that it may be too late – but that’s okay.
WHAT IS THE CHILD TAX CREDIT?
Under the chairmanship Joe Biden’s American Rescue Plan, families with children six and under receive $300 per month, while families with children six to 17 receive $250.
That’s half of the estimated child tax credit parents will receive after filing their 2021 tax return.
The child tax credit payment available to taxpayers whose adjusted adjusted gross income (AGI) is:
- $75,000 or less for singles,
- $112,500 or less for the head of household and
- $150,000 or less for married couples filing jointly and qualified widowers and widowers.
For every $1,000 of earnings above the elimination, the amount is reduced by $50.
Advance payments are automatically sent to eligible families with no action required if the Internal Revenue Service (IRS) has your tax information.
NO FILTER, PEOPLE WITHOUT FILTER
Experts warn that with the deadline approaching, it may be easier to wait until your 2021 tax return to claim a lump sum.
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Eligible families who missed out on monthly payments can claim the lump sum by filing a 2021 federal income tax return, according to the IRS.
That includes families that don’t normally need to file a tax return.
The agency says people can check their eligibility using Child Advance Tax Credit Eligibility Assistant.
Some taxpayers may already be eligible to “plus” stimulus test if their income drops significantly between 2019 and 2020.
You will need to file a 2021 tax return, even if you don’t normally file, to claim any Refund Credit Recovery.
OTHER PEOPLE MAY HAVE RETURNS
Because the tax credit acts as an advance on what families will receive when they file their 2021 tax return and based on their 2020 tax return, some people may see their income increased and therefore owed money.
The IRS says families who received the child tax credit first will need to compare them to the amount they can properly claim on their 2021 tax return.
Taxpayers receiving less than the amount for which they are eligible will claim a credit for the remaining amount during the 2022 tax filing season.
Taxpayers who received more than the actual child tax credit they could claim may need to repay some or all of the excess payment when they apply.
The IRS will send Letter 6419 in January 2022, which will show the total amount of the child tax credit prepayment a taxpayer will receive in 2021.
The agency says you should keep documentation and any other IRS letters about child tax credit prepayments with their tax records.
https://www.the-sun.com/news/4274260/urgent-child-tax-credit-december-deadline/ Child tax credit urgent warning as December ‘stimulus’ deadline hits TOMORROW – here are the steps you must take NOW