On February 8, Janet L. Yellen, Secretary of the Treasury, addressed attendees at the White House Child Tax Credit and Earned Income Tax Credit Day of Action.
According to research, the Earned Income Tax Credit and Child Tax Credit have enormous advantages, and Yellen has urged those who have unclaimed stimulus checks — or only a fraction of the money — to file taxes to get the remainder.
Because a baby was born in 2021 and the family had never filed a tax return with the child before, many families did not get any advance Child Tax Credit stimulus check, according to her address. As the people of Puerto Rico did not realize they needed to submit taxes to obtain the money, others were rejected.
File taxes to receive your full Child Tax Credit
People who did not get CTC or EITC payments should submit their taxes in 2022 since that is the only way to get the unclaimed stimulus check to those who need them right now.
According to Yellen, the IRS sent out monthly payments to 30 million households in 2021, with 26 million low-income children obtaining the credit for the first time. In 2021, 70% of carers reported they were less anxious about making ends meet as a consequence of the increased CTC, according to Go Banking Rates.
The IRS offers free e-file and tax preparation services to individuals who qualify based on income through the IRS Free File program for those who still owe all or part of their CTC payments. The IRS Free File program might be one alternative for taxpayers with an adjusted gross income of $73,000 or less to file taxes and receive their Earned Income Tax Credit or Child Tax Credit payments.
A recent study was undertaken by researchers from Washington University in St. Louis and Appalachian State University. It was one of the criticisms directed at the extended credit by opponents that the monthly payments urged parents to stop working.
President Joe Biden called for the Child Tax Credit to be extended for another year as part of his “Build Back Better” proposal. West Virginia Democrat Joe Manchin, on the other hand, rejected the expanded credit in a Senate that was evenly divided because the price tag would increase the deficit and exacerbate inflation.
To earn the full Child Tax Credit, make sure you file your taxes this year if you have children under the age of 18. Due to the ongoing pandemic, the Child Tax Credit was extended and expanded to include more families, increasing both benefits and eligibility.
Immigrant families with children who have social security numbers and those with little or no income may be eligible for a tax credit of up to $2,000 per kid. You must still file your taxes for the year 2021 if you have already begun receiving monthly payments to receive the remaining amount of tax credits available to you.
This will most likely be the last tax season in which the benefits are available unless Congress chooses to extend the extension of Child Tax Credits, which they have not done yet. It’s crucial to keep in mind that the deadline for filing your taxes is quickly approaching, and this year’s deadline is April 18. There are free services available to help you prepare your taxes, as per California Examiner.