MILLIONS of Americans across the country may still be able to demand thousands worth of direct payments.
Those applying for a federal child tax credit (CTC) may be in luck as the direct payment amount has been temporarily expanded.
This expansion came in 2021 and was increased to $3,600.
This resulted in eligible families receiving advance payments for each of the last six months of this year.
The rest of the money had to be claimed during the upcoming tax season.
However, the Treasury Department’s Inspector General for Tax Administration revealed in a recent report that the Internal Revenue Service (IRS) failed to send the CTC advance to about 4.1 million households.
That means it’s worth checking with a tax professional to see if you might be owed the stimulus and $3,600 CTC payment.
If you’ve already claimed the 2021 CTC, it’s only worth $2,000 for 2022 because Congress didn’t extend the extension.
Despite this, President Biden revealed in his recent State of the Union address that he plans to “restore the full child tax credit that will give tens of millions of parents some breathing room and halve child poverty, to the lowest levels in history.”
As The US Sun previously reported, couples can qualify for the full benefit if they earn less than $150.00, and single parents applying to be heads of household must earn less than $112,500.
Remember that tax credits aim to increase your refund or decrease your tax liability.
Some residents may also benefit if their states introduce a child tax credit.
Illinois state legislatures are currently pushing to establish a $700 CTC.
If it becomes law, income restrictions will apply.
Individual applicants earning less than $50,000 and joint applicants earning less than $75,000 could claim.
As long as these requirements are met, any child under the age of 17 would qualify for the $700 tax credit.
The Illinois legislature would also make it available to eligible taxpayers each year.
However, it is still not guaranteed to pass.
Another proposal in Nebraska, tabled by Senator Danielle Conrad, would allow parents to request up to $1,000 for each eligible child.
However, there are income limits on the full amount under the plan.
First, individual applicants must earn up to $75,000.
The heads of household must raise up to $92,500.
Joint filers can also only make up to $110,000.
If income exceeds these thresholds, state parents can only qualify for a reduced amount, which is five percent less for every $1,000 over.
Families would still be entitled to some relief if individual applicants, heads of household, and joint applicants raised up to $95,000, $122,500, and $150,000, respectively.
Montana Gov. Greg Gianforte has also proposed residents $1,200 for each child under the age of six.
The measure was reportedly moved to the House of Representatives floor.
Gianforte also introduced a $5,000 adoption tax credit as part of his 2023 budget.
For related content, The US Sun has the full list of states that offer their own version of the child tax credit.
The US Sun also has the story of the $6,000 “no strings attached” payment due this spring.
https://www.the-sun.com/money/7433336/four-million-americans-claim-direct-payment/ Four million Americans can still claim a missed one-time direct payment of up to $3,600 — check if you’re eligible