Parents who welcome a new child into their family this year may be looking forward to a different kind of joy in the shape of a $3,600 tax refund in 2021.
Important Information About $3,000 Child Tax Credit
In a recently published article in CNET, parents used to report their children on prior tax returns in order to get a $2,000 child tax credit as part of their refund. Things, on the other hand, are different in 2021. For children under the age of six, the child tax credit check is now worth up to $3,600, and for children aged six to seventeen, it is worth up to $3,000.
In addition, unless they are to opt-out, the Internal Revenue Service is sending eligible families early monthly partial payments this year. It’s great news for individuals who are in urgent need of money right now, but the requirements for babies born this year are especially puzzling.
New parents will have to work more and wait a bit longer for their child tax credit payments. Because families won’t be able to inform the IRS of a new dependent until September, the new dependent’s first monthly payment won’t be paid until October 15.
Here’s How To Claim the $3,600 Child Tax Credit
If your dependents have not yet been reported to the IRS or have not yet been born, you have two options for receiving the child tax credit. To begin, like with the previous version of the benefit, you could always wait until next spring to file your 2021 tax return and get the entire child tax credit in one lump sum.
You may need to unenroll in the advance payment program to explore this option since those monthly payments are automatic for qualified families. If you want to receive some early monthly payments before next year’s tax season, there is a second alternative.
Furthermore, the Child Tax Credit Update Portal allows taxpayers to double-check household information, monitor payment status, and unenroll from monthly checks. The site will soon enable parents to reveal any changes in their status, such as the number of dependents or income, after filing their most recent tax return with the IRS in 2020 or 2019.
It is also important to note that the eligibility is determined by your child’s age at the end of the calendar year. That means that any qualifying children born on or before December 31, 2021 will get the full $3,600 tax credit from 2021 to 2022. Parents of twins may be eligible for up to $7,200 in financial assistance. The only changes will be the duration and amount of each check.