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Request a prior child tax credit on the 2021 tax return

You may have already received your monthly check, but you may still be borrowing a lot of money. To get it, you need to request payment of the child tax credit in advance.

The tax season is approaching. This year, the filing is more complicated than usual, thanks to the many changes made as part of it. American rescue plan, Stimulation package Signed by President Joe Biden last March..

One of the main complications taxpayers are wondering about: Advanced child tax credit.. Unlike the normal year, in 2021 the IRS sent a check to parents and guardians every month. So, if you already have some money, do you still need to charge credit on your return as you normally do?

question

Do I need to claim a child tax credit on my 2021 tax return even if I have already received a monthly prepayment?

Source of information

answer

Yes, you need to claim credit to balance the money you are borrowing.

What we found

Child tax credit is an existing provision Since 1997 As a way to give parents and guardians extra cash to help raise their children.

The money usually comes in the form of a lump sum at the time of tax. When a parent or guardian submits a tax return, the credit will incur an additional $ 2,000 per child.That money can Go to either Towards the total of their unpaid taxes, or an increase in their refunds.

But in 2021 it worked a little differently. The American rescue plan is Advance child tax credit.. That meant that many families began receiving monthly direct payments instead of having to wait for the tax season to collect lump sum payments.

In addition, total credit has increased significantly per child. Previously, the credit was $ 2,000 per dependent child under the age of 16. In 2021, children under the age of 6 were $ 3,600 and children aged 6 to 17 were $ 3,000.

To make monthly payments, the IRS estimated the amount of credit each taxpayer owes, based on the number of dependents they have. That information was collected from the 2020 tax return or, if not filed in 2020, the 2019 tax return. They didn’t submit it in either year, but if they sent the IRS information to undergo a stimulus check, they were using it. Alternatively, if none of these apply, you can qualify by submitting a non-filer form.

Once they calculated your total credits for 2021, the IRS divided that number by 12 to estimate the amount you should be sent each month.

But those payments didn’t start until July, And they ended in December. This means that you may have received only 6 checks last year, which is half of your total outstanding amount. The other half will be provided in the form of traditional credit when filing a 2021 return.

“They will not automatically give you the other half of the money unless you include your dependents, fill out a tax return or electronically submitted tax return and request a balance of that money.” Mark Stever said. Jackson Hewitt’s Chief Information Officer.

If you don’t charge money now, the government will keep it, Stever says.

There will be no monthly checks in 2022 as Congress did not extend these prepayments. And next year, the process of getting a child tax credit will return to normal.

Details of VERIFY: IRS adjusts 2022 federal income tax bracket

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Request a prior child tax credit on the 2021 tax return

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