The federal government offered an extended Child Tax Credit (CTC) of $3,600 2021, but many parents would not have known about it and would not have received the payment if they failed to file.
What is the $3,600 Child Tax Credit?
The American Rescue Plan, which was unveiled by former President Joe Biden in 2021, raised the child tax credit from $2,000 to $3,000 for each kid over the age of six.
But three years later, some Americans have yet to claim their child tax credit, which increased from $2,000 to $3,600 for parents with children under the age of six.
What should you know?
A spokesperson for the Internal Revenue Service (IRS) stated that a person has a 3-year window period for any unclaimed tax benefits, however April 15, marks the deadline for this. Unfortunately, failure to submit your returns by April 15, will result in forfeiting the CTC and any other unclaimed tax return from 2021. It has been made clear that there will be no extensions or exceptions for this date, apart from those who are military service.
Who is Eligible?
In order to qualify,
– The kid must have been less than eighteen at the end of 2021.
– Relationship: The child needs to be a sibling, foster child, stepchild, biological child, or any eligible relative.
– Residency: For more than half of 2021, the youngster has to reside with you.
– Support: No more than half of the child’s financial assistance may have come from their own sources.
– Income Limits: Married couples filing jointly may get up to $150,000, heads of household may receive up to $112,500, and single filers may receive up to $75,000 in full credit. Higher salaries cause the credit to fade off.
How to Claim the Credit
– File a 2021 Tax Return: To be eligible for the credit, you must file a 2021 return even if you don’t typically file taxes. Attach Schedule 8812 to Form 1040.
– Modify Your Return: You could use Form 1040-X to file a modified return if you filed a 2021 return but did not claim the credit.
– Seek Assistance: IRS-partnered programs provide low-income families free tax preparation assistance.
Why You Should Act Now
Millions of households relied on the CTC for much-needed financial aid throughout the COVID-19 pandemic. This is the final opportunity for people who were unable to claim what may be a substantial sum of money. In addition to securing the CTC, filing now guarantees that you will get any other refundable credits or tax refunds to which you may be eligible.
How to Avoid Missing Future Tax Deadlines
To prevent similar issues in the future:
- Set up reminders for your annual taxes well in advance of April 15.
- Speak with a tax professional or utilize IRS Free File resources.
- Verify your annual eligibility for credits such as the CTC or the EITC.
• Maintain a record of all IRS payments and communications.
During the year 2021, the CTC had provided up $3,600 per child, ensuring that families have financial stability during trying times. The deadline of April 15, 2025, is your final opportunity to receive this payment if you haven’t already done so. It all depends what you would need to use this payment for, but it is important to note that this could have a significant impact on your financial stability. Ensuring that you file your 2021 tax return will assist in determining your eligibility as soon as possible. There is not much time left, and if money is not claimed by the deadline, they will be lost. Don’t let this opportunity pass you by; take immediate action to reclaim what is properly yours and provide the necessary financial assistance for your family. Your actions now will determine the course of the future.