Child Tax Credit Changes for 2021

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Anyone getting tax services in Kearny, NJ knows that paying taxes is no joke. But doing it right can give you benefits in times of need. One of those is the Child Tax Credit. If you haven't heard about it, then you might be glad to hear that the updated version may provide some help. Unlike the current child tax credit plan, where parents are only allowed to claim their tax credit in full once their taxes are filed, the current arrangement will enable them to claim half of the full amount and half later.  

Starting July 15, the IRS will be paying most parents up to $300 per child per month, depending on a few factors. So if you're struggling from regular expenses piling up from raising your children, you can rest assured that help is coming. The money given can be used for anything your household needs to function. 

So What are Advance Child Tax Credit Payments?

These are early payments given by the IRS taken from 50% of the estimated amount of Child Tax Credit you may claim on your 2021 tax return during the 2022 tax season. If your 2020 or 2019 tax return has already been processed, the advanced monthly payments will be made starting July through December 2021. The amount will depend on the information contained in your tax return, so make sure you get tax services in Kearny, NJ.

How Do You Receive Advance Child Tax Credit Payments?

If you are eligible based on your 2020 or 2019 tax return, then you will automatically receive the payments without taking any extra steps. However, if you have not filed your 2020 or 2019 tax return, you must do so immediately. Thanks to the Non-Filer tool unveiled by the IRS, individuals who were previously not required to file can file a simplified tax return for 2020. This way, they become eligible to register for the advance Child Tax Credit payments as well as the third Economic Impact Payment. They can also claim the 2020 Recovery Rebate Credit. For more information on this, ask a professional accountant to help you through the steps.

Who Qualifies for Advance Child Tax Credit?

To qualify for this benefit, parents must have at least one child who is under 18 years old. They should also make less than $75,000 yearly for individual filers, less than $150,000 for joint filers, or less than $112,500 for filers who are unmarried single parents. They need to be United States residents for at least 6 months and live with their claimed dependent/s for at least half the year.

Do You Need to Have Income to Receive this Benefit?

Income is not needed because you can receive advance Child Tax Credit payments as long as you are eligible.

How Do You Get Help if You Can't Complete Your 2020 Tax Return by Yourself?

If you do not know how to use the Non-Filer tool to file your 2020 tax return or you are unable to use it, you can get help from various tax return preparers such as certified public accountants, attorneys, and others who are qualified to assist you with this task. 

If you need help with this task, choose Nicholas J. Coco as your Certified Public Accountant, and he will gladly offer you his tax and accounting services in Kearny, NJ. As a skilled professional in the accounting field, he is more than qualified to help you file your tax return so you can qualify for this benefit. Get in touch with us today.