Photo: Edwin Martínez / Impremedia
In an effort to provide guidance on the scope of the extension of the “Child Tax Credit” (CTC), the White House established next Monday, June 21, such as raising awareness of this tax benefit.
Monthly advance payments under the credit expanded under the Biden Administration’s “American Bailout Plan” will reach millions of homes as of July 15.
The “Child Tax Credit Awareness Day” initiative is one of several announced by federal authorities so that the greatest number of people are aware of the eligibility requirements and request the funds in the event that the Internal Revenue Service (IRS) does not have your information on file.
“Today, the Biden-Harris Administration is announcing that Monday, June 21, will be Child Tax Credit Awareness Day — a day of action to spread the word and expand on upcoming monthly payments that will benefit nearly all businesses. families It is also important that we extend the benefits beyond 2021 as the president has proposed as part of the ‘American Families Plan’. The Administration will be asking elected officials, faith-based organizations, organizations that fight for children and their families, and other partners to join us on June 21 in raising awareness to help us along the way, ”announced the White House in a newsletter on June 11.
The IRS estimates that about 39 million households covering 90% of children in the US they would receive monthly payments between July and December of this year without the need for additional paperwork.
As part of ongoing efforts to distribute the funds, the IRS sent letters to some 36 million families two weeks ago alerting them of their eligibility for payments.
The White House document also highlights the increase it will imply for families in terms of the amount of money to be received for each qualified minor.
“In 2021, for most families, the ‘Child Tax Credit’ increased to $ 3,000 for each child between the ages of 6 and 17 and to $ 3,600 for each child under the age of 6. For example, a married couple with an income of less than $ 150,000 with two children under the age of 6 would be eligible for the $ 7,200 Child Tax Credit in 2021 – about $ 3,200 more than they would have received prior to the ‘American Bailout Plan,’ ”the Biden Administration stated.
As they explain, credit is fully refundable, which means that taxpayers can benefit from it even if they don’t owe taxes to the IRS.
Biden Administration to Promote Online Tool for “Non-Filers”
As part of the awareness day, the Biden Administration will promote the new tool announced by the IRS this week named “Non-filers Sign-Up”.
The above is a free service that people can access through IRS.gov to inform the agency about their family status and the number of minor dependents in the household and thus request payments.
The portal was created primarily for low-income families who are not required to file taxes, but meet the requirements to receive funds under the credit extension.
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 presumed eligible to receive full payment under the child credit.
From thresholds higher than the above, the IRS will apply the gradual reduction of the amount.
The IRS will be based on the level of gross adjusted income (AGI) of the custodial parent (s) contained in the 2019 or 2020 tax return as well as the number of minors per household and their ages to determine the amount to be paid. In cases where you do not have this information, then you will use the data provided through the “Non-filers” tool.
The agency has proposed to deliver half of the applicable payment this year in six installments, between July and December, which will fluctuate between $ 250 and $ 300 per child per family.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.