MILLIONS of Americans will receive their final monthly child tax credit payment in December under President Joe Biden’s Rescue of Americans Plan.
The purpose of the bill – signed by Biden in March – is to help stabilize families and return the US economy to post-Covid normality.
How much is the 2021 child tax credit?
Most former taxpayers were able to reduce their federal income tax bill by up to $2,000 per child.
However, under new rule, families can get an additional $3,000 tax break per child ages six to 17 for tax year 2021 only.
While you can get $3,600 for every child under six.
Additionally, people with dependents between the ages of 18 and 24 who are attending college full-time can receive $500 each.
Any household with qualifying children latest $1,400 stimulus check is set up to receive cash child credit.
The maximum credit available to an adjusted gross income (AGI) taxpayer is:
- $75,000 or less for singles,
- $112,500 or less for the head of household and
- $150,000 or less for married couples filing jointly and qualified widowers and widowers.
If you earn more than this, the additional amount on top of the original $2,000 credit – $1,000 or $1,600 per child – will decrease by $50 for every $1,000 in AGI already Revision.
Combined with $1,400 checks and other categories, it could more than halve the number of children living in poverty, according to the Center for Poverty and Social Policy at Columbia University.
Who is eligible for the child tax credit?
Most families are eligible for CTC, as long as the child is a U.S. citizen, U.S. citizen, or so-called resident alien of the United States.
The children must also live with the tax preparer for more than half a year and are considered dependents on the tax return.
This can be a son, daughter, stepchild, adopted child, brother, sister, step-sister or step-sister, but it can also be a grandchild, niece or nephew.
You can check if you are eligible for credit using IRS Online Tools.
To use it, you will need to know your filing status, whether you can claim the person as a dependent, and his or her date of birth.
When will I get the 2021 child tax credit?
On Wednesday, December 15, 2021, child tax credit payments will roll out to millions of Americans.
This will be the last payment month for 2021.
So far, most eligible parents should have received payments for July 8, 9, 10 and 11 — up to $1,500 each.
Typically, monthly checks of $250 to $300 per child are deposited in the middle of each month unless you opt out.
If you opt out, keep in mind that you will only receive the lump sum in 2022 after the IRS processes your 2021 tax return.
The full payment will come with your tax refund, or it can be used to offset any taxes you owe.
Currently, the credit will expire in 2022, unless renewed.
President Joe Biden has previously called for an extension of child tax credit payments through at least 2025.
Meanwhile, Senate Democrats are considering a three-year extension to the $3,600 maximum child credit earlier this year.
However, under the latest White House proposal, the credits could be extended for another year.
We explain the latest information on potentially extended child tax credits this year.
We also explain what parents share in joint custody need to know about child tax credit payments.
Plus, we’ve rounded up eight ways to get help with childcare costs.
Meanwhile, there are some people may still owe additional payments.
https://www.thesun.co.uk/money/14310288/child-tax-credit-payments-stimulus-biden/ How much is it and when will I receive it?