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IRS has tax information for stimulus check, child tax credit

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(KTLA) – The deadline for filing tax returns for 2021 is still a few months away, but IRS on Tuesday encourages taxpayers to begin preparing their returns – especially those that may need to take action regarding certain payments from the federal government.

These include both common economic impact payments as well as advance child tax credits, according to the agency.

Here’s what the IRS wants taxpayers to know about both programs:

Economic impact payments

The third and final round of federal stimulus checks began in March, but some people who qualified for one of these tests received nothing or less than the full $1,400.

They may be eligible for credit rebate recovery, as long as their 2021 tax information belongs to instructions of those entitled for the federal government’s COVID-19 relief program, according to an IRS bulletin.

Anyone who believes they’re eligible for the first credit will need to file a tax return for 2021, regardless of how often they file one. They will also have to report the amount they received for the third stimulus check – including any plus payment – to calculate how much more they owe.

“Ensuring they use the correct payment amount will help them avoid processing delays that could slow down their refunds,” the IRS said.

Individuals can access information about their economic impact payment amounts here. You can also find more information about the recovery discount credit here.

(Note: IRS information only impacts federal stimulus checks, and not just sent out by states like California.)

Paying the Child Tax Credit

NS advance Child Tax Credit payments began reaching tens of millions of eligible households in mid-July and is being paid up to six monthly installments through the end of 2021. (Final payment is set to release on 15th. December.) Families received up to $300 for each eligible child under age 6 and $250 for each eligible child ages 6 to 17.

However, because the amounts are largely based on 2019 or 2020 tax returns – whichever is most recent on IRS records – some people may have received more or less than what they actually deserved. eligibility for this year, according to the IRS.

The federal agency says anyone who collects too much may need to repay some – or even all – of the advance credit. On the other end of the spectrum, those getting less than they deserved can claim the money left over when they pay their 2021 taxes.

Because only the first six months of the child tax credit are paid in advance, the second half of the credit will be reported on their 2021 tax return. Some parents have chosen not to receive the upfront payments at all and will have can claim what they owe as a lump sum.

Finally, “Families that have received prepayments will need to compare advance Child Tax Credit payments they receive in 2021 in the amount of Tax Credit Child that they can properly claim on their 2021 tax return,” according to the IRS website.

(You can find more information on how to reconcile the two here.)

The IRS created a special page for taxpayers outlining actions that can be taken to simplify the filing process next year.

https://kfor.com/news/irs-has-tax-info-for-stimulus-checks-child-tax-credits/ IRS has tax information for stimulus check, child tax credit

Dais Johnston

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