Taxpayers with a Social Security number and ITIN have just seven days to file their 2020 tax returns to ensure that they will receive the appropriate amount in advance payments of the Child Tax Credit.
The tax agency notes that payments will be made periodically from July to December to taxpayers who meet the criteria. The total will be up to 50% of the credit, estimated from the information on the 2020 taxpayer returns. However, the IRS will use the 2019 tax returns if the 2020 tax returns have not yet been filed.
The IRS urges people with children with Social Security to file 2020 tax returns as soon as possible to ensure they receive both the Child Tax Credit and other tax credits available to those who qualify.
Besides filing the tax return, no other action is needed from the taxpayers, according to an IRS fact sheet.
The 2020 tax filing deadline is May 17, 2021, but requesting an extension extends that deadline to October 15.
The child must live with the person receiving the credit for at least half the year and be under the age of 18 as of December 31, 2021.
Families can receive the benefit for biological children, stepchildren, half siblings, adopted children, grandchildren and nephews, among other minor dependents. Here you will find information on which minors can receive financial aid.
The money a family receives through the Child Tax Credit does not affect the income limit required to obtain other types of assistance, including Medicaid, food stamps, and other financial assistance.
The credit will include children who will turn 17 in 2021. For fiscal year 2021, families claiming the credit will receive up to $ 3,000 per qualifying child between the ages of 6 and 17 by the end of 2021, and $ 3,600 per qualifying minor child. age 6 at the end of 2021.
The increased amounts are reduced for income greater than $ 150,000 for married filers filing jointly and qualifying widows or widows, $ 112,500 for heads of household, and $ 75,000 for all other taxpayers.
Taxpayers who do not wish to receive an advance payment of the 2021 Child Tax Credit will have the opportunity to decline aid. Taxpayers will also have the opportunity to update information on changes in their income, filing status, or the number of qualifying children. The IRS will soon release more details on how to follow these steps via a website.
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