October 22, 2021
What is the Child Tax Credit 2021?Child Tax Credit refers to a payment program granted to parents, legal representatives, and caretakers to help them increase their income, reduce federal tax payments, and provide some measure of financial relief. As stated on the White House official online portal: "The Child Tax Credit in the American Rescue Plan provides the largest Child Tax Credit ever and historic relief to the most working families ever." The child tax credit was first granted on July 15; since then, a considerable number of American families and immigrants with and without a resident status are expected to continue getting monthly payments.
How Much Money Goes into the Child Tax Credit 2021?The child tax credit represents a vital asset to help low-income families. The overall estimate going to these families is $15 billion, which would benefit 61 million kids. A family with children younger than six years old will get a yearly credit of $3,600, while families with children between 6 and 17 years of age will get $3,000 a year. This means that you could get an average of $6,600 each year as a parent of two underage dependents.
When is the Child Tax Credit Granted?The Internal Revenue Service (IRS) started granting the first half of the child tax credit in July 2021, favoring monthly payments over a once-a-year approach. Because the payments began somewhere around mid-July, parents will get their first share in advance when it comes to families who have filed their 2020 tax return, with the remaining share being scheduled for their 2021 tax return. It's important to note that the monthly payments involved in the child tax credit cover $250 - $300 depending on the kid's age.
Who Qualifies for the Child Tax Credit?As we mentioned earlier, to qualify for the child tax credit, you and your spouse should have presented a joint tax return in 2019 or 2020 while requesting the child tax credit in that same tax report. You are also eligible if you have presented your information through the IRS system to receive the financial stimulus payment in 2020.
Our Tax Preparers Can Help You File All Your Financial InformationIf you think you meet the requirements to qualify for the child tax credit 2021 and you don't know how to file your tax information, you can hire any of our professional tax preparers. United Tax & Accounting Group will tell you all you need to know about the child tax credit and what you must do to get it.
Hire a team who has tried hundreds of cases & successfully obtained favorable results for thousands of clients.