What You Need to Know as Child Tax Credit Comes to an End
The Child Tax Credit officially which officially began in July and every month since then, it has been paying financial aid to families. The benefit will end by December 15 unless officials renew it.
This program issues payment of up to $300 for every child under six and $250 for each child aged six to 17. Ultimately, parents can claim up to $3,600 from this program.
Families will only get half of the CTC in 2021 which amounts to $1,800. The other half of the payment will be released next year after families submit their 2021 tax returns.
The last round of the CTC is expected to be paid this week. The payments should automatically be credited to a registered bank if the information is available on the 2020 tax returns. If not, the payments will be sent via paper check, which could take a few weeks of delay.
There are eligibility requirements for the CTC depending on how the document filing is done. Single filers must have an adjusted gross income (AGI) of less than $75,000 per year, and couples jointly filing must have an annual income of $150,000 or less.
After receiving the Child Tax Credit payments for this year, recipients have to wait until April 2022 to receive the rest. As previously indicated, they must submit their 2021 tax returns to receive the remaining half of the payments, which should be paid in a lump sum.
However, be warned that the eligibility requirements might affect the 2022 CTC payments. If recipients experience a change of income status or the registered child falls out of their age bracket, the Child Tax Credit payment might also change in amount. This implies that families should no longer expect the full $1,800 payment.