Millions of Americans are already submitting their tax forms and taking advantage of the new or enhanced tax credits available this year. Several tax credits are available, but figuring out which ones to use is a challenge for many people. The American Recovery and Reinvestment Act (ARRA) provided people with additional child tax credits and stimulus payments that they may otherwise have missed. A more challenging tax year is on its way.
Child tax credits and your IRS tax return
Every month from July through December in 2021, parents get a cheque. For the first time, the IRS gave households an advance on the money they expected to receive when they submitted their tax returns in 2022. If you received advance payments from your employer, do you need to raise your taxes?
Claim the child tax credit
Yes, you’ll want to get your hands on the remaining sum. For the past few years, the child tax credit has been worth $2,000, but that’s not the case this year. Under the age of 6, the distinction is worth $3,600, while for children aged 6 to 17, the credit is worth $3,000. The amount of money that parents received in 2021 was only the first half of what they will receive in the future. This year, parents may expect to get an additional $1,800 for children under six and $1,500 for those aged 6-17 if they claim the credit. It is possible that if your income or number of dependents has changed, you may be due more or owing back the money you got from the government. With your 2021 tax return, this will all be taken care of. Even if you don’t have to file taxes, you’ll need to see the other half of that sum. Don’t expect to get your money if you don’t request it from the IRS.
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