Last year’s child tax credit could boost your 2021 tax refund – CBS Pittsburgh

PITTSBURGH (KDKA) – Next Monday is the first day to file your 2021 tax return, and this year you could get a slightly larger refund because of last year’s child tax credit.

When President Biden and the Democrats passed the Rescue Americans Plan last year without Republican support, most Americans received an additional $1,400 in stimulus checks. It is not taxable.

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In addition, families with children are entitled to a partial child tax credit advance. You’ll get the rest of that credit when you file your taxes this year.

“That credit, up to half of the enhanced version, was distributed last year. The other half will be filing the taxes you’ll file now,” IRS spokesman Raphael Tulino told KDKA money editor Jon Delano on Wednesday.

Remember that enhanced child tax credit is $300 a month for a child under 6 or $250 per month for a child between 6 and 17?

Most families get that from July to December. But that’s only half of the child tax credit you get under President Biden’s Rescue Americans Plan.

“If you receive any part of the enhanced child tax credit in 2021, you will receive a letter – 6419 – and that is a really important letter to keep because it will have information news about what you get and what you can get. Tulino said.

For example, if a family received $1,500 in enhanced child tax credits for one child last year, says Tulino, for example, you can claim the remaining $1,500 toward the tax you owe on the statement. filed in 2021. Letter 6419 would be helpful.

Delano: “Have the letters been delivered?”

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Tulino: “Yes, starting in December and continuing as we talk. So hopefully by the end of the month we’ll sell them all out. ”

Don’t forget, for 2021, the child tax credit is a refundable tax credit, which means that if the credit is greater than the tax owed, you’ll get the difference in the refund.

“As part of the pandemic response, they have refunded a lot of these credits. That means if you have a low, middle income, no income and you have more tax credits than your tax liability, they will refund you,” said Mark Steber, director Jackson’s tax information said. Hewitt, a national tax preparation company.

“The child tax credit has been greatly altered in 2021, up to $3,600 credits refundable per young child, $3,000 for older children,” said Steber.

“The refunded portion is new. In the past, when you got these tax credits or credits, they could offset your taxes,” says Steber. “The Child Tax Credit has a zero tax liability requirement, meaning you can have zero income, have small children under 6, get a $3,600 credit, and you will get a $3,600 tax refund even when you have no tax liability”.

But to get that additional refund, you must file a 2021 tax return, and eligible taxpayers should get Letter 6419 from the IRS now to help them do it.

“It’s a really important letter to keep because it will have information about what you get and what you might get based on what you put on your return.”

It’s a one-time deal because all Republicans and at least one Senate Democrat oppose President Biden’s Build Back Better plan. Biden and virtually all Democrats want to extend the larger child tax credit by one year.

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Without Build Back Better, that would mean this year’s annual child tax credit drops to $2,000 per child, not advanced to anyone on monthly checks, Non-refundable and applicable to children 16 years of age or younger, not 17 years of age or younger. Last year’s child tax credit could boost your 2021 tax refund – CBS Pittsburgh


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