Many Americans have received letters from the Internal Revenue Service encouraging them to apply for the child tax credit before November 15.
A fraction of American citizens had received the notifications about the credit.
This fraction contains the low-income households that don’t typically file taxes.
Participants who sign up for the credit will be given $800 as a lump sum in December, which is half of their total child tax credit.
The remaining amount of the credit will be claimed in 2022 when they file their taxes for 2021.
It is important to note that low-income taxpayers had to register through the IRS if they weren’t required to file returns.
The refundable amount can be claimed in full by those who didn’t sign up.
According to Newsweek, up to 50,000 people received lump-sum payments following their registration.
For Families who filed their taxes in 2020 were automatic, they enrolled according to Newsweek.
Under the expanded child tax credit, a household with a child under age 5 can receive up to $3,600.
More so, a household with a child between ages 6-17 can receive up to $3,000 with half payable in six monthly installments of $300 or $250 per child.
Regardless, If you file your federal income tax return in 2022, you can claim a similar amount.
By the first quarter of next year, the IRS will send a letter detailing the number of eligible children used in the payment calculation for 2021 and any payments made in that year.
Unless Congress extends it, payments are set to expire in December.
But starting from Dec. 15, most of the December payments will be paid via direct deposit.