Millions of families this summer will receive financial relief from the federal government in the form of a child tax credit starting July 15, 2021.
The White House even declared June 21, 2021 to be “Child Tax Credit Awareness Day” to let families know how to claim their child tax credit next month.
Here is a brief rundown of how it works and how eligible families can claim it.
The child tax credit is a tax credit that gives financial aid to parents with children. In tax years before 2021, the child tax credit was an income tax credit for families of up to $2,000 per eligible children under age 17 that was partially refundable.
Starting in the 2021 tax year, the credit was expanded to $3,000 for children between 6 and 17 years old and $3,600 for children under the age of 6.
The credit is now fully refundable and half the amount can be paid in advance monthly payments beginning July 15, according to the Internal Revenue Service. The IRS added that eligible families can claim the other half of the money when filing their 2021 tax returns.
If an eligible family making up to $150,000 if filing as a couple or a single parent filing as head of household making up to $112,500 has children, these families will be eligible to take advantage of the child tax credit, according to the White House.
Most families who have filed a tax return in 2019 and 2020 or signed up to receive a stimulus check do not need to do anything and will receive their benefits automatically.
For those families that do not fall under either of those categories, the IRS has a “nonfilers tool” where a person is asked some basic personal information to determine eligibility.
After a person signs up using the tool, there is no further action required to receive the benefits.
Our journalism needs your support. Please subscribe today to NJ.com
Katherine Rodriguez can be reached at krodriguez@njadvancemedia.com. Have a tip? Tell us at nj.com/tips.
"claim" - Google News
June 21, 2021 at 10:58PM
https://ift.tt/3d1EHdU
Child tax credit 2021: How does it work? How do you claim it? - NJ.com
"claim" - Google News
https://ift.tt/2FrzzOU
https://ift.tt/2VZxqTS
Bagikan Berita Ini
0 Response to "Child tax credit 2021: How does it work? How do you claim it? - NJ.com"
Post a Comment