https://www.irs.gov/ : $15 Billion in Child Tax Credit Payments were Disbursed

https://www.irs.gov/ : $15 Billion in Child Tax Credit Payments were Disbursed

The fourth enhanced child tax credit payment, which was distributed by the Internal Revenue Service on Friday, should be arriving soon for millions of families.

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The Treasury Department and the Internal Revenue Service report that more than $15 billion was sent to families with roughly 61 million children.

Since the first payment in July, eligible households have received more than $61 billion.

Parental tax credits range from up to $300 for children under the age of 6 and up to $250 for children aged 6 to 17. In 2021, the IRS plans to send you two more monthly instalments.

Even though it’s made numerous attempts to connect with and set up a portal for poorer families to provide the information required to receive the credit, the agency has also had issues getting funds to some households, particularly poorer families.

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How It Works

Use the assistant to:

  • Check if you might be eligible for advance payments of the Child Tax Credit

What You Need

 Your tax return filed for 2020, or your 2019 tax return if you haven’t filed for 2020.

If you don’t have a copy of the return and know your filing status and number of qualifying children you claimed, you may be able to estimate the total income from your tax return to answer all the questions. You can use the following to make estimates:

  • Income statements such as W-2s and 1099s
  • Amount of any expenses or adjustments to your income

Am I Eligible?

You may still be able to benefit from the credit even if you aren’t working now or didn’t work in 2020.

You may receive half of the Child Tax Credit for each child in equal payments each month for the remainder of 2021. Payments will start in July.

  • For each qualifying child under age 6, you will receive up to $1,800 in advance, generally paid in six monthly payments of $300.
  • For each qualifying child age 6 through 17, you will receive up to $1,500 in advance, generally paid in six monthly payments of $250.

These advance payment amounts begin to be reduced if your modified AGI exceeds:

  • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
  • $112,500 if filing as head of household; or
  • $75,000 if you are a single filer or are married and filing a separate return.

The accuracy of this eligibility depends on the accuracy of the information you provide. The IRS makes no guarantees about the accuracy of this eligibility result and accepts no liability resulting from your use of this result.

Who Qualifies?

For heads of households earning up to $112,500 a year and joint filers earning up to $150,000 a year, the full enhanced credit is available; after that, it begins to be phased out.

At $2,000 per child, the credit becomes stagnant for many families, and for single parents making over $200,000 or married couples making over $400, the credit gradually phases out.

Since the March coronavirus relief package made the child tax credit fully refundable, more low-income parents are eligible for it. Due to their families’ low incomes, an estimated 26 million children could not receive the full credit because it was only partially refundable.

According to the left-leaning Center on Budget and Policy Priorities, about half of Black and Latino children, as well as children living in rural areas, received only a partial credit or no credit at all before the enhancement.

Non-citizen parents can collect payments on behalf of their citizen children if they have an ITIN and their children have Social Security numbers, according to the IRS.

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