Nashville-Davidson, Tennessee 2021-05-04 08:42:22 –
The 2021 US Rescue Planning Act only expands 2021 tax credits.
According to the Internal Revenue Service, the meaning of extended credits is as follows:
- The credit amount of many taxpayers will increase.
- Credits for eligible children will be fully refunded. This means that taxpayers can benefit from credit even if they have no income or have not paid income tax.
- Credits include children who will be 17 years old in 2021.
- Taxpayers will be able to receive a portion of their credit in 2021 before filing their 2021 tax return.
Families applying for a 2021 child tax deduction will receive up to $ 3,000 per eligible child between the ages of 6 and 17 at the end of 2021. At the end of 2021, you will receive $ 3,600 per child under the age of six.
Earlier legislation was up to $ 2,000 per child under the age of 17.
According to the IRS, the increased amount will be phased out for the following reasons:
- Income of more than $ 150,000 for a widow or a married taxpayer who is eligible for a widow.
- Head of household $ 112,500,
- $ 75,000 for all other taxpayers.
Prepaid child tax credits are made to qualified persons from July to December.
The IRS encourages people with children to file their 2020 tax returns as soon as possible to ensure that they are eligible for an appropriate amount of child tax credits.
Child tax credit: What you need to know about advance payments Source link Child tax credit: What you need to know about advance payments