ON YOUR SIDE: Watch soon for letters regarding upcoming child tax credits
SPRINGFIELD, Mo. (KY3) - Parents of children will soon see more stimulus money in their bank accounts.
The IRS will send letters to more than 36 million Americans eligible to receive monthly child tax credit payments. As part of the American Rescue Plan Act signed in March, the government expanded the child tax credit. And you can get part of it in advance instead of waiting for the credit when you file your taxes.
The child tax credit you normally receive filing your taxes was up to $2,000 per child. The credit increased to $3,000 per child or up to $3,600 for children under age six. The IRS plans to send eligible families advanced payments, starting around July 15. You would receive up to $250 or $300 a month per child, depending on the age of the child. To get the payments, you must have either filed your 2019 or 2020 federal income tax return or used the non-filers tool on the IRS website to register for an economic impact payment. The payments phase out for married couples earning more than $150,000 or singles who make more than $75,000.
If you are eligible, you do not have to do anything to receive the payments. You will have the option to opt out of the advance payments. If you choose that option, it doesn’t mean you don’t get the tax credit.
“It just means that you’re going to wait until you file your return to receive that credit,” said Michelle Smith, Elliot Robinson and Company. “So you’ll still get that credit whenever you file your return, which means that it would be a bigger refund to you or a reduction in your balance due.”
Smith says it’s important to save all documents related to your advanced payments for your tax preparer.
The IRS is creating tools to determine qualifications and opting out benefits.
Learn more about the child tax credit: https://www.irs.gov/newsroom/irs-sending-letters-to-more-than-36-million-families-who-may-qualify-for-monthly-child-tax-credits-payments-start-july-15
To report a correction or typo, please email email@example.com
Copyright 2021 KY3. All rights reserved.