The IRS will continue to distribute financial aid for coronavirus for the remainder of the year under the “American Rescue Plan.”
Photo: ADEK BERRY / AFP / Getty Images
The payments corresponding to the extension and advancement of the “Child Tax Credit” under the “American Rescue Plan” of the Biden Administration that will be distributed by the Internal Revenue Service (IRS) starting next July could mean up to a maximum of $ 3,600 per retail for eligible taxpayers.
However, the total amount of money the IRS will send to families divided into seven payments, one for each month through December, will depend on the number of eligible dependents in the household and their age, as well as the parents’ income.
A maximum payment per child of $ 3,600
The credit extension this year increased the amount by less from $ 2,000 to $ 3,600.
However, there are specifications. Children 5 years and younger can be claimed for up to $ 3,600. In the case of minors between 6 and 17, it would be awarded up to a maximum of $ 3,000; while for college students between 18 and 24 years old, parents would receive a single payment of $ 500.
The Government through the IRS must distribute checks of $ 300 per month for each child under 6 years of age, as well as checks of $ 250 for each child between 6 and 17 years old to eligible families; plus a single payment of $ 500 per dependent of legal age.
Amount of payments will also be based on the taxpayer’s AGI
The entire credit applies to individuals with children and gross adjusted income of $ 75,000 or less; $ 150,000 or less for couples, and $ 112,500 for single mothers or heads of household.
The gradual reduction or the funds for the credit begin to reduce for people who report higher income than the previous ones.
To calculate how much money will be owed to families, the IRS will examine this year’s tax returns of potential beneficiaries and the details of their adjusted gross income (AGI).
In case you have already filed your taxes, you will not need to present an amended document.
The CNET medium published its virtual calculator so that users can have an idea of the amount of money they would receive from the extension of the “Child Tax Credit”.
The service, which is accessed through its website, requires people to complete four boxes– Marital status on your tax return, your adjusted gross income, the number of children 5 years old or younger in the household as of December 31, 2021, and the number of children 6 to 17 years old in the household for that same date.
The calculator will give you an estimate based on those questions. It should be noted that the tool is not absolute, and is based on the information available at the time about the scope of the third stimulus bill approved in Congress, so it does not replace the final calculation that the IRS will perform.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.