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 some of it up front instead of waiting for the credit when you file your taxes.
The child tax credit you normally receive by filing your taxes was $ 2,000 per child. The credit has increased to $ 3,000 per child or up to $ 3,600 for children under six. The IRS plans to send advance payments to eligible families, starting around July 15. You will receive up to $ 250 or $ 300 per month per child, depending on the child’s age. To get the payments, you must have either filed your 2019 or 2020 federal income tax return or used the Non-Filer Tool on the IRS website to register for an Economic Impact Payment. Payments are phased out for married couples earning over $ 150,000 or singles earning over $ 75,000.
If you are eligible, you do not have to do anything to receive the payments. You will have the option to unsubscribe from down payments. If you choose this option, it does not mean that you do not get the tax credit.
“It just means you’re going to wait until you file your return to receive that credit,” said Michelle Smith, Elliot Robinson and Company. “So you will still get that credit every time you file your return, which means it would be a bigger refund for you or a reduction in your balance owing. “
Smith says it’s important to keep all documents related to your prepayments for your tax preparer.
The IRS creates tools to determine qualifications and reap the 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 15th
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