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The money for extension to the “Child Tax Credit” (CTC) under the “American Rescue Plan” in the cases of divorced parents only one of the taxpayers can claim the minor or minors as dependents.
Usually, the parent who has custody of the child the longest is the one who claims the credit from the Internal Revenue Service (IRS). But if there is a joint custody arrangement, for example, the parent with the highest adjusted gross income is the one who must claim the funds that the Biden Administration proposes. ship early from July 15.
In some instances, divorced or unmarried couples They make their own arrangements and divide the number of dependents to claim the tax credit.
In those cases, the parents fill out form 8332 at the time of filing taxes to specify who should receive the money for dependents.
IRS will be based on 2020 tax returns
Under the third stimulus bill passed last March, the IRS will begin sending payments to the parent who claimed the minor or minor children on their 2020 tax returns.
However, the agency is preparing to open two portals on its website, so that taxpayers can update their family status and specify the person to whom payments should be directed.
Another alternative that users would have is to request through the tool that the money be sent in a single single payment the following year.
IRS sends 36 million letters to eligible households to the CTC
The IRS has set out to send payments to some 36 million families who are eligible for the CTC extension, which this year grants up to $ 3,600 per retail.
This week, the agency reported that it sent letters to eligible households informing them of the start of the program.
“The letters are addressed to families who may be eligible based on the information they included on their 2019 or 2020 federal tax return or who used the Non-Filers tool on IRS.gov last year to sign up for an Economic Impact Payment.” , indicates a statement from the IRS.
Families who opt for advance payments will receive between July and December one check per month from the IRS with the corresponding amount. The amount of money each family will receive will depend on the number of children, the ages, and the gross income of the parent (s).
Increased CTC payments will be made on the 15th of each month, unless the 15th is a weekend or holiday.
Six monthly payments until December
Thus, after the first payment on July 15, the delivery dates would be: August 13, September 15, October 15, November 15 and December 15.
Children 5 years and younger can be claimed for up to $ 3,600. In the case of minors between 6 and 17, a maximum of $ 3,000 would be awarded for each one; while for college students between 18 and 24 years old, parents would receive a single payment of $ 500.
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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.