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Panama City, FL – Child tax credit: What you need to know about advance payments

Panama City, FL –

(WJW) – Many families will receive advance payments on Child tax credit from this summer, the IRS mentionned.

The American Rescue Plan Act of 2021 extends the tax credit to 2021 only.

Here’s what extended credit means, according to the Internal Revenue Service:

  • Credit amounts will increase for many taxpayers.
  • The qualifying child credit is fully refundable, which means taxpayers can claim the credit even if they have no earned income or owe no income tax.
  • The credit will include children who turn 17 in 2021.
  • Taxpayers can receive part of their credit in 2021 before filing their 2021 tax return.

Families claiming the child tax credit for 2021 will receive up to $ 3,000 per eligible child aged 6 to 17 at the end of 2021. They will receive $ 3,600 per eligible child under age 6 at the end of 2021. end of 2021.

Under the law prior to this, the amount could reach $ 2,000 per eligible child under 17 years of age.

According to the IRS, the increased amounts are being phased out for:

  • income greater than $ 150,000 for married taxpayers who file a joint return and eligible widows or widowers,
  • $ 112,500 for heads of household,
  • and $ 75,000 for all other taxpayers.

Advance payments of the child tax credit will be made from July to December to eligible persons.

The IRS urges people with children to file their 2020 returns as soon as possible to ensure they are eligible for the appropriate amount of the child tax credit.

Learn more about the Child Tax Credit here.

Child tax credit: What you need to know about advance payments Source link Child tax credit: What you need to know about advance payments

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