We urge you to read this post to get all the essential information on the upcoming Extra Tax Refund Money Under the Child Tax Credit: Who is Eligible and Payment Dates.
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Extra Tax Refund Money Under Child Tax Credit
With the highest Child Tax Credit ever, the American Rescue Plan offers historic relief to most working families. Families can receive up to $2,000 per child, though the money is only partially refundable.
If your tax liability is less than the available credit, you may be eligible for the Extra Tax Refund Money under the Child Tax Credit, also known as the refundable Additional Child Tax Credit.
This additional tax credit can help parents reduce their tax bill and put more money back in their pockets to offset expenses. To learn more about the Extra Tax Refund Money under the Child Tax Credit, keep reading this post.
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Understanding Extra Tax Refund Money Under CTC
The Additional Child Tax Credit (ACTC) is a refundable tax credit designed to help qualified taxpayers reduce their overall tax obligations. Families who owe less in taxes than their eligible Child Tax Credit amount can claim the ACTC. This credit reimburses the taxpayer for any unused portion of the Child Tax Credit, up to an inflation-adjusted cap.
Families may qualify for this refundable tax benefit if certain requirements are met. In 2023, the ACTC may be refundable for up to $1,600 per eligible child. In 2024, this refundable amount will increase to $1,700 per eligible child. To claim the refund, filers must complete Schedule 8812.
Who is Eligible?
Almost all households with children are eligible, subject to certain income restrictions.
Here are some common and important eligibility criteria you must fulfill to receive the Extra Tax Refund Money under the Child Tax Credit:
- The youngster must be under 17 at the conclusion of the tax year.
- The child can be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, niece, nephew, or grandchild.
- You must claim the youngster as a dependent.
- The child’s self-support should not exceed fifty percent.
- The child must live with you for the majority of the year.
- The child must be a resident alien, citizen, or national of the United States.
- The youngster should not file a joint return with anybody else unless the purpose is to claim a refund of taxes withheld or estimated taxes paid.
The Child Tax Credit and the Additional Child Tax Credit are intended to benefit working parents with low to moderate incomes. For specific inquiries, visit irs.gov/childtaxcredit2021.
Payment Dates
The IRS has announced that individuals who choose direct deposit and have no issues with their tax return should expect most additional Child Tax Credit refunds to be available in their bank accounts or on debit cards by February 27. Some payments may even arrive a few days earlier.
The delay is due to the IRS’s inability to issue Earned Income Tax Credit (EITC) and additional Child Tax Credit (ACTC) refunds before mid-February, as required by law. This extra time helps prevent fraudulent returns.
For updates on your specific refund date, check the “Where’s My Refund?” tool. By February 17, this tool will provide anticipated deposit dates for most early filers of EITC/ACTC refunds.
Thank you for visiting our portal to stay updated on the latest information regarding Extra Tax Refund Money under the Child Tax Credit.