Are you still one of the many families struggling financially due to setbacks brought by the COVID-19 pandemic? Maybe the Child Tax Credit can help out.
Eligible beneficiaries are set to receive $1,800 in Child Tax Credit payments before the year ends.
Families can receive a total of up to $3,600 for each child under age 6 and up to $3,000 for each one ages 6 through 17 for 2021 which is an increase from the regular child tax credit of up to $2,000 for each child up to age 17.
There are also updates for the Child Tax Credit for 2022 to watch out for, which are as follows:
- Increases the tax credit amount. The tax credit’s maximum amount is $3,000 per child and $3,600 for children under 6.
- Makes the credit fully refundable. Even if you don’t owe taxes, you could get the full CTC refund.
- Removes the minimum income requirement. You can have zero income and still claim the CTC.
- Raises the qualifying age. Children 17 and under can qualify for the credit.
Provides advance payments. If you already qualify for the current CTC when you filed your 2020 tax return (which you file in 2021), you can start receiving part of the new credit during 2021.
- You don’t have to wait until you file your 2021 tax return (which you file in 2022). The IRS will send you monthly payments for half your new credit between July and December 2021.
- Lowers the phase out rate. The CTC amount will start to gradually decrease starting at $75,000 ($150,000 for married couples and $112,500 for head of household).
According to the Treasury Department and Internal Revenue Service, more than $15 billion was already sent to families of roughly 61 million children.
For more updates, stay tuned here at the East County Gazette.