Families that were eligible for the child tax credit in 2021 but did not get it may still apply. Families may get higher monthly payments to catch up to CTC until the end of the year, according to the IRS.
Last July 15 and August 13, two increased child tax credit payments were handed out. A third payment will be made in September 15, Washington Post said. But only Americans who met all of the criteria would be eligible to receive the funds.
Child Tax Credit: How To Know Your Eligibility and Amount You Will Receive
The CTC payments and budget are determined by the age of the dependents, CNet said. The money would be split in half, with the first half being given as monthly payments in advance and the second half being budgeted as a lump sum to be paid once the 2021 tax returns are completed. The following are the CTC payments:
- Ages 5 and under: $3,600, with the first half paid in $300 monthly installments.
- Ages 6 to 17: $3,000, with the first half given in monthly installments of $250.
- At the age of 18: $500 one-time cheque.
- Full-time college students between the ages of 19 and 24: a $500 one-time payment.
The profile of eligible Americans’ 2019 or 2020 tax filings is used to identify them. The IRS will not process your CTC payments if you have not provided these papers.
How to File for Child Tax Credit Payments
Low-income families and individuals who don’t file their tax returns on a regular basis are encouraged to do so now. They may utilize the IRS’s Child Tax Credit Non-Filer Sign-Up option to submit their paperwork online. To utilize this tool, go to their official website and provide the following information:
- Full name
- Current postal or mailing address
- Email address
- Year of birth
- You and your dependents’ Social Security numbers (or other taxpayer identification numbers)
- Number, type, and routing number of your bank account
- Identity Protection Personal Identification Number (IP PIN) that you got from the IRS earlier this year if you have one.
The US Treasury recommended utilizing the GETCTC.org service for low-income families that don’t typically pay their taxes.
People who have already filed their 2020 tax returns will get their CTC payments without doing anything. The IRS should have delivered the first two CTC payments through direct deposit or physical mail automatically.
It’s worth mentioning that the IRS has lately had system issues as WLWT5 reported. Payment delays resulted from the issue, which required the system to deliver child tax credit payments via paper mail rather than direct transfer. The delivery date might even be pushed back up to three weeks.
How To Get Additional $300+ Catch-Up Child Tax Credit Payments
IRS officials told CNBC that CTC catch-up payments will result in higher monthly payouts to late filers. The money from the July and August installments would be added to the remaining monthly instalments as catch-up payments. Here’s an illustration:
- If you are eligible for $3,600 installments and filed your 2020 tax returns in September, you will begin receiving $600 monthly payments in October;
- If you are eligible for $3,600 payments and filed your 2020 tax returns in October, you will begin receiving $900 per month in November.
For the payments to be received, the tax returns must be filed by the Child Tax Credit deadlines of October 4, November 1, and November 29.