The Internal Revenue Service (IRS) urged families eligible for the “Child Tax Credit” extension of the Biden Administration to present as soon as possible a tax return so the agency can process advance payments starting July 15.
Eligibility by income level
The extension of the credit granted this year up to a maximum of $ 3,600 per retail applies to taxpayers with a modified adjusted gross income (AGI) of:
• $ 75,000 or less for single people
• $ 112,500 or less for heads of household and
• $ 150,000 or less for married couples filing jointly and for qualified widows and widowers
Low-income families would have to file taxes even when they are not required to do so
However, low-income households that are not required to file taxes with the IRS could lose the benefit if they do not submit their information to the IRS promptly.
The IRS relies on tax information of the potential beneficiary to calculate the amount per CTC.
“Filing early will also ensure that the IRS has your most up-to-date banking information, as well as key details about eligible children. This includes people who normally do not file a tax return, such as homeless families, the rural poor and other underserved groups, ”the IRS said in a press release this week in which it also announced the shipment. of notification letters to some 36 million families eligible for payments.
“For most people, the fastest and easiest way to file a tax return is through the Free File system, available only on IRS.gov,” the agency added.
Eligible taxpayers don’t need to take any action now except file their 2020 tax return if they haven’t already done so, the IRS insisted.
The “American Rescue Plan” approved in the United States Congress last March increased the maximum Child Tax Credit in 2021 to $ 3,600 for children under the age of 6, and to $ 3,000 per child between the ages of 6 and 17. Prior to this year, the credit granted up to $ 2,000 per eligible child, and from age 17, dependents could not be claimed for the credit.
Monthly payments between $ 250 and $ 350 per minor
Millions of Americans are eligible to receive monthly advance payments of between $ 250 and $ 350 per child.
As part of the initiatives promoted by the IRS to guide the community and reach the largest number of people, the entity is preparing to launch several online portals as of July 1.
One of the tools will allow families to pay advance monthly payments, between July and December; and instead, receive the full amount of the credit when they file their 2021 return next year.
“Additionally, later this year, families and individuals will also be able to go to IRS.gov and use the Child Tax Credit Update Portal to notify the IRS of changes in their income, marital status, or number of qualifying children, update their direct deposit information and make other changes to ensure they receive the correct amount as quickly as possible, ”added the tax collector’s office.
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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.