The $3,600 child tax credit for 2021 is now here for Americans to claim on their tax returns with the IRS.
The IRS is also urging Americans to watch out for an important letter in their mail that will help them claim the credit.
36 million Americans can expect the letter in the mail by the end of Jan.
IRS: Letters sent from the IRS explained
In the letter, the amount in advanced payments will be outlined for taxpayers to see what they’ve already received. This way, they’ll know what they can then claim.
A letter will also be sent to show taxpayers if they are eligible for the recovery rebate credit. This is available to those that may have been eligible for the stimulus check but did not receive it.
If parents did not receive any advanced payments, or opted out, they may see a tax credit worth the full $3,600.
The letters should be kept with your tax records. Use them to double check the accuracy of your tax return.
Taxes: What can I make before I pay federal income taxes?
Child tax credit explained
Most families that had children under age 6 received monthly payments worth $300 from the month of July through the month of Dec.
They were sent $1,800, or one half of their child tax credit.
Families with children between the ages of 6 and 17 saw $250 payments during the same months.
This means they were sent $1,500 and can claim the second half of that credit which is worth $1,500.
If you did not receive all of these payments but were entitled, you may claim them this year.
Some parents may have had income changes or filing status changes. They may owe the money back to the IRS.
Social Security: Tax limit for 2022 explained
Child tax credits in 2022
There is no monthly payment for the month of Jan.
Extension of the child tax credit has not happened. If it does, there is discussion that there could be double payments for Feb.
The change to the tax credit was temporary and expired at the end of 2021.
President Joe Biden was hoping it would pass under the Build Back Better bill. That would extend it for one more year.
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