Last year, a more generous Kid Tax Credit awarded qualified parents up to $3,600 per child. There is some good news for families that missed part or all of those payments: it is not too late to make a claim.
However, in order to use a streamlined mechanism - GetCTC.org - they must file by November 15 to submit their information for the money.
Unclaimed Child Tax Credit
"The money is there; the money is yours," said Gabriel Zucker, assistant policy director for tax benefits at Code for America, which supplies the tool.
"You have till November 15," he continued. That message is intended for parents with little to no income, who do not normally have tax-filing requirements.
This year, although, individuals who did not file have an additional incentive to do so: higher tax credits that were temporarily authorized by the American Rescue Plan Act in 2021. The Child Tax Credit is one of them, as is the third stimulus check.
This includes an increased child tax credit of $3,600 for every kid under the age of six and $3,000 per child under the age of eighteen, up from $2,000 per child. Last year, advance monthly payments of up to $300 per kid were made. The remaining funds might be obtained by filing tax returns this year.
Furthermore, the improved credit is entirely refundable and offered to parents with little to nil annual income. According to current Census statistics, the more generous credit contributed to the greatest reduction in child poverty between 2020 and 2021, as per CNBC via MSN.
While these funds have greatly reduced child poverty in the last two years, 2020 and 2021, it is estimated that around 4 million people are eligible for this aid but have not applied.
Per Marca, the major reason for the low number of people who have received aid is the complexity of applying or the absence of IRS counsel; nonetheless, the aforementioned simplified tool from GetCTC.org is meant to overcome the aforementioned gap.
Deadline For 2021 Tax Filing
Although the Child Tax Credit (CTC) has been reduced to $2,000 per child for the 2022 tax year, there is still time to take advantage of the enhanced CTC of 2021. If you sought a tax extension on April 18, you have two weeks until the October 17 tax filing deadline to finish your 2021 taxes and claim your Child Tax Credit.
If it's any consolation, Americans generally have until October 15 to file, but because that date falls on a Saturday this year, you'll have that weekend to complete your return, according to The Street.
The American Rescue Plan Act (ARP) significantly increased the CTC for 2021, delivering the greatest US child tax credit ever. Most working families were eligible to claim $3,000 for each kid under the age of 18 and $3,600 for each child aged six and under.
According to ChildTaxCredit.gov, all qualified families may receive the entire credit if they earned up to $150,000 for a married couple or $112,500 for a single parent in 2021. Although time is limited, claiming the CTC should not be difficult or time-consuming. Gather all of your documentation referring to your stated income, spending, and anything about your dependents, such as their Social Security numbers.
Second, try to file your taxes online. It may be produced and processed more quickly, and your refund will be sent immediately to your bank account. According to the Social Security Administration's Social Security Matters blog, while the IRS offers guidelines for all tax filing questions, ChildTaxCredit.gov has a number of free, easy-to-understand advice.
If you chose to get a portion of your CTC benefits in the second half of 2021, you must file by Oct. 17 to collect the rest. Consult your Letter 6419, which was provided by the IRS to all individuals eligible in December 2021 or January 2022, to see how much you are expected to claim. According to the IRS, this letter provides a taxpayer's total amount of 2021 advance Child Tax Credit payments as well as the number of qualified children utilized to compute advance payments, Go Banking Rates reported.
