This year, the final expanded child tax credit can possibly come alongside tax refunds. Parents can hope for an increased amount with the new child tax credit. However, only eligible parents would be able to enjoy the delivery of extra credit on child tax. Here are some more insights on the matter:
Credit offers as per child’s age
The credit refunds include different amounts to be delivered to parents. The distribution is categorized as per age of the child. For kids under 6, a credit worth ,800 or ,500 per kid with ages 6 to 17 will be offered.
For people who did opt out in 2021 as well, a credit worth $3,600 for kids under 6 or worth of $3,000 per kid with age 6 to 17 will be delivered.
To ensure you receive full money, keep following updates on IRS Letter 6419.
Keep the child tax credit letter safe
By December last year, the IRS had already sent child tax credit letters to eligible families. If you haven’t received your Letter 6419, then keep checking on your mailbox, and talk to the transit office. The letter is important as it contains essential data regarding child tax.
Do not panic if the letter is lost; you can find the same information on the IRS website.
Monthly payment’s impact on your tax refunds
The child tax payments of 2022 might influence your 2021 tax refunds. For example, if you received an overpayment this year, you would need to return the extra money. In a scenario where monthly income changes and you don’t report to the IRS. Then, you might get a small or high tax refund based on higher and lower income received than the usual amount that the IRS calculates for your payment.
Aside from this, CNET also notes that if in 2021 you received more credit than your actual eligibility amount, you might not need to pay it back. However, this advantage will depend on the level of your income and whether you are equipped for “repayment protection.”