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Just by answering four questions, the virtual calculator created for the CNET portal provides an estimate to users of the payment they would receive under the “Child Tax Credit” (CTC) extension that will be distributed by the Internal Revenue Service (IRS) as of July 15.
The free tool allows potential payment recipients to get a general idea of the monthly amount under the CTC that this year grants up to $ 3,600 per child under 6 years old and $ 3,000 for each minor between 6 and 17 years old.
Six monthly payments of between $ 250 and $ 300 per minor under CTC
The agency’s plan is deliver half of the applicable payment this year in monthly shipments, between July and December, which will fluctuate between $ 250 and $ 300 per child per family.
In order to establish the amount per eligible household, the IRS will rely on the level of gross adjusted income (AGI) of the custodial parent (s) contained in the 2019 or 2020 tax return and the provisions in the third stimulus law on applicable thresholds.
If your AGI as a single filer is $ 75,000 or less; $ 112,500 or less for heads of household and $ 150,000 or less for married couples as well as qualified widows and widowers, you are supposed to receive full payment under the child credit.
In the event that your income exceeds those thresholds, the IRS will begin to apply the adjustment for the gradual reduction in payment.
“For most people, the modified AGI is the amount shown on line 11 of your 2020 Form 1040 or 1040-SR. Above these income thresholds, the additional amount above the original credit of $ 2,000 , either $ 1,000 or $ 1,600 per child, it is reduced by $ 50 for every additional $ 1,000 in modified AGI”The agency explained on its website.
How the calculator works to establish the amount of “Child Tax Credit”
CNET’s virtual calculator asks the user to answer four questions to perform the general computation: the marital status on your tax return, your gross adjusted income, the number of children aged 5 and under in your care as of December 31, 2021, and the number of minors between 6 and 17 years in your care for the same date.
You should be aware that the result of the service is an approximation and should not be taken as an absolute figure.
The IRS has made additional efforts in recent weeks to reach as many credit recipients as possible.
Almost two weeks ago he sent letters by mail to 36 million households to inform them of their eligibility for payments and the option to discard the monthly installments and receive a one-time payment next year during the taxable season.
Additionally, the agency launched the “Non-filers” portal so that families who usually do not file low income taxes can enter their information and that of their dependents to receive payments.
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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.