As Americans gear up to file their 2021 taxes this year, they should also be aware of the potential for $6,700 in tax credits along with any missing stimulus checks.
The IRS has created the Recovery Rebate Credit for those that received some of the funding, but not all of it.
Taxpayers can deduct that amount of money that they did not get from their overall tax bill.
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There is also the Earned Income Tax Credit that can be worth as much as $6,700 this year for a family with three children.
If families did not collect the monthly child tax credit payment during July through Dec. of 2021, they may also claim that.
The credit is normally worth $2,000 per child, but was expanded to $3,600 for children under age 6 or $3,000 for kids ages 6-17.
The advanced credit payments were worth up to $1,800, or the first half of the 2021 credit.
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This left the second half available for families to claim in one lump sum.
Anyone that did not get the credit at all, will see a lump sum of $3,600 should they qualify.
2022 child tax credit and tax returns
Payments ended on Dec. 15, 2021. The Build Back Better bill did not pass by Dec. 28.
In order for payments to continue in Jan., the bill needed to pass.
This means if it does continue, families could see double the payment in Feb. to make up for Jan.
The IRS tax deadline is normally April 15, but this year it will be the 18th. This is because Emancipation Day falls on the 15th.
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The tax deadline for 2021 was changed to May 17th due to COVID-19.
Taxes will likely look different for many Americans this year.
This is because unemployment and tax credits were very different during 2021.
Form 6419 will help you to know which tax credits you received advances on. Those could shrink your refund or have you owing the IRS.
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