Surprise payments for new child tax credits are on their way to eligible families in need of help.
New legislation passed in New Mexico last month provides for $175 per child in bonus checks to be mailed to eligible families.
The bill, which will provide tax breaks totaling $380 million, includes increasing the child tax credit.
The tax credit depends on income level, but it’s not yet clear who is eligible.
Meanwhile the IRS has said taxpayers requesting a direct deposit on their returns for the year should receive their money in three weeks or less.
The amount of child tax credit prepayment you received in 2021 is based on the IRS’s estimate of the CTC amount you are entitled to for the 2021 tax year.
The law requires this estimate to be based on two primary sources of information.
The first is your tax return for tax year 2020. If that return is not available, the IRS will refer to your 2019 return.
Second, any updated information you provide to the IRS in 2021, including changes in the number of eligible children, changes in your income, and changes in your filing status.
The Agency understands that family and life situations change throughout the year.
Read our live child tax credit blog for the latest news and updates…
As a result, you may receive a total amount of upfront payments that may be greater than the amount of CTC to which you are entitled.
According to a center for budgetary priorities59 percent of families used child tax credit payments to help put food on the table.
52 percent of parents used it to pay utility bills and 45 percent used it to pay off their mortgage.
The IRS said there are requirements to qualify for child tax credit advance payments.
According to their website, Americans must have:
- You filed a tax return for 2019 or 2020 and requested the child tax credit on the return or
- Give us your information in 2020 to receive the economic impact payment with the non-notifiers: Enter payment information here or
- Submit your information to us in 2021 using the Non-Filer: Submit Your Information Tool and
- Lived in the United States (the 50 states and the District of Columbia) or filed a joint tax return with a spouse who has a primary residence in the United States for more than half the year and has a primary residence in the United States for more than half the year
- A qualifying child who will be under the age of 18 at the end of 2021 and has a valid Social Security number, and
- Made less than certain income limits
https://www.the-sun.com/money/4819293/child-tax-credit-new-mexico-checks/ Surprise $175 in new child tax credit payments sent to eligible families