Child tax credits begin in July, IRS urging people with children to file returns ASAP
The federal income tax filing due date is May 17, 2021.
JACKSON, Miss. (WLBT) - Parents will begin receiving monthly payments this summer to ease the financial burden of the pandemic, the IRS says.
The advance child tax credit is part of Biden’s $1.9 trillion COVID relief package. Payments run from July through December. Normally, you receive a credit when filing taxes for the previous year’s income, but the American Rescue Plan will allow half of the credit to be taken in advance.
It expands the child tax credit for the 2021 tax year only unless Congress extends or makes them permanent.
The IRS says expanded credit means:
- The credit amounts will increase for many taxpayers.
- The credit for qualifying children is fully refundable, which means that taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes.
- The credit will include children who turn age 17 in 2021.
- Taxpayers may receive part of their credit in 2021 before filing their 2021 tax return.
Advance payments go to taxpayers who have a primary home in the United States for more than half the year, the IRS says. The total of the advance payments will be up to 50 percent of the Child Tax Credit. Advance payments are based on 2020 tax returns (or 2019 returns if the 2020 returns are not filed and processed yet).
The IRS says families will receive up to $3,000 per qualifying child between the ages of 6 and 17 or $3,600 per qualifying child under age 6. Broken up in monthly payments, families could get up to $300 a month per child under age six and $250 per child under 18, NBC reported.
The IRS urges anyone with children to file their 2020 tax returns as soon as possible to make sure they receive the right amount of credit.
If you’ve already filed, you don’t need to do anything to receive the credits.
The credit is only available to families with kids.
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