The IRS and Treasury Department announced today that millions of American families would soon receive their last advance Child Tax Credit (CTC) payment for December. In addition, qualified families who won’t receive advance payments can claim the Child Tax Credit on their 2021 federal tax return to receive the missed payments and the remaining half of the credit.
Child Tax Credit from 2021 tax return
This final batch of 2021 advance monthly payments, totaling approximately $16 billion, will be distributed to more than 36 million families across the country. The majority of payments are made via direct deposit.
Eligible families who did not receive advance Child Tax Credit payments may claim the total amount of the Child Tax Credit on their 2021 federal tax return, which must be filed in 2022. Families who did not usually need to file a return will need to file a 2021 tax return and compare the advance Child Tax Credit payments they received in 2021 with the amount of the Child Tax Credit they can adequately claim on their 2021 tax return, according to the IRS.
The expanded child tax credit of 2021, increased to $3,600 per child under the age of six and $3,000 per child aged six to seventeen, will benefit nearly 40 million families and 65 million children in the United States. Advance monthly payments made in the latter part of the year significantly reduced poverty.
While the advancement of the child tax credit in 2022 remained unclear, the money from the 2021 credit hasn’t been distributed in full by any means. After filing their taxes and receiving tax refunds, eligible families will receive the other half of their child tax credit money, cnet.com posted.Others joined the Child Tax Credit advance payments scheme later, so their payments will be different.
File Form 1040 if you did not receive CTC payment in 2021
If you didn’t receive your Child Tax Credit payments in 2021, it’s not too late to get them now. You simply need to complete Schedule 8812 (Form 1040). You can accomplish this form before the upcoming tax deadline of April 18 for filing tax returns for the fiscal year 2021.
Although you are unlikely to receive any Child Tax Payments before the deadline, completing Schedule 8812 (Form 1040) ensures that your situation has been correctly registered. You will be due Child Tax Payments after the deadline. Of course, this is assuming you are eligible for them, Marca reported.