Think you don’t qualify for the child tax credit coming July 15? You may be in for a surprise this Thursday.
By Thursday, the first child tax credit payment should be out from the IRS. You can wait till July 15 to see if get the monthly payments, or check now to see if you are eligible. Some families could expect up to $3,600 per kid over the course of this year and next, but there are several income and age requirements the IRS uses to determine how much you qualify for.
Here’s a recap. Parents with an income of less than $150,000 (married and filing jointly) will get a max of $300 for each child under the age of 6 and $250 for each child ages 6 to 17 in monthly advance payments through the end of the year. The other half of the money will be a part of your tax refund in 2022. Families with higher incomes or with older dependents will get smaller payments.
Read below to see if you qualify for the enhanced credit and check out this FAQ on requirements and more. We can also show you how to use ID.me to manage your payments, and explain how they might affect your taxes next year. We’ve also put together details on the third stimulus payment and the latest update on a fourth stimulus check. This story is updated frequently.
1. Look for an IRS letter about the child tax credit
About 36 million families who may be eligible for a child tax credit payment received a letter from the IRS. That means it has determined that you could qualify for child tax credit money based on your 2019 or 2020 federal income tax return. If you don’t typically file taxes, the IRS can use any information you submitted online using the nonfilers tool. So yes, even if you didn’t file your taxes you may still get advance monthly payments this month.
But that’s just the first letter giving you a heads-up that you might qualify. The IRS plans to send a second letter to confirm eligibility and estimate how much child tax credit money you could receive (or use our calculator to get a quick estimate). To recap, the tax credit is up to $3,600 per child under age 6, and up to $3,000 for each child ages 6 to 17. You’ll get half of the amount through monthly installments this year and the other half when you file your taxes next year.
You don’t need to do anything if you receive this letter, except hold on to it in case you need to reference it later on. Those who didn’t get the letter, don’t worry quite yet. Read on for more qualification tips. ReadMore
Source : cnet