It’s almost time to submit your most recent tax return. While this isn’t often the most enjoyable time of year, the government assistance you received in the previous year is likely to entitle you to further payments, particularly if your financial status has changed since you filed last year. The Internal Revenue Service (IRS) has scheduled the start of tax season for Monday, January 24.
The two primary focal areas are the Child Tax Credit and the third round of Economic Impact Payments, sometimes known as stimulus checks.
Tax Credit for Children
You’ll be able to claim the balance of the increased Child Tax Credit if you file your tax return for 2021. From July to December, eligible families received up to $1,800 for each kid under the age of six and $1,500 for each child aged six to seventeen. The quicker your tax return is completed, the sooner you’ll get the balance of your refund.
Overwhelmingly, people who have received the child tax credit payments have used it for food, rent, and utilities and to pay off debt, data from the U.S. Census Bureau has found https://t.co/5uu6cyrazV pic.twitter.com/eQSMmiAo7a
— Bloomberg Politics (@bpolitics) December 20, 2021
You may be required to refund the IRS in part or in whole if the total amount of advance Child Tax Credit payments received exceeds the amount of Child Tax Credit you are entitled to claim in the 2021 tax year. According to the IRS, beneficiaries of the Child Tax Credit will get Letter 6419 in January, detailing the amount of credit they still have or must repay.
Checks for Stimulus
Individuals who did not qualify for the third stimulus check or did not get the full amount as of their 2020 tax return may be eligible for the Recovery Rebate Credit based on their 2021 tax data. This is because if someone’s wages changed after the checks were first sent, they would still be entitled to receive them if they were now below the eligibility criteria.
- A person having an adjusted gross income (AGI) of up to $75,000 falls under this category.
- With an AGI of up to $112,500, ahead of household
- An AGI of up to $150,000 for a married couple filing jointly.
Many taxpayers will receive information letters from the #IRS by the end of January. Using the information about #ChildTaxCredit payments or the #EconomicImpactPayment included in these letters can reduce tax return errors and speed refunds. https://t.co/86X3GiVvCl pic.twitter.com/KbNam1vSnB
— IRSnews (@IRSnews) January 10, 2022
To receive the benefit, applicants must submit a 2021 tax return, even if they don’t regularly do so. Individuals will also require the amount of their third stimulus payment, as well as any Plus-Up Payments, to determine their exact 2021 Recovery Rebate Credit amount when filing their tax returns.
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