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Get $2,000 More: IRS Confirms $3,600 Payments Are No Longer Available

The COVID-19 relief legislation provided money to help households in the US. The American Rescue Plan Act included $1,400 checks for adults and dependents and more money for parents with young children, according to an article published by The Ascent on February 2, 2022. These payments were for the 2021 tax year and no larger payments have been authorized for 2022. However, the Internal Revenue Service may still provide up to $2,000 for parents who need additional financial assistance.

The IRS has said that some people may get less money in 2022 due to changes to the tax code related to COVID-19, as stated in an article published by The Ascent on December 30, 2022. One of these changes is the end of the expanded Child Tax Credit, which gave parents between $3,000 and $3,600 per eligible child.

This change may be difficult for some American parents who are facing financial challenges due to inflation. However, the IRS has said that many parents will still be eligible for payments of up to $2,000 for the 2022 tax year.

The $2,000 payments for families are possible because of the Child Tax Credit that existed before the COVID-19 relief bills. Parents who qualify can claim a credit of up to $2,000 when they file their taxes each year, with $1,400 of it being refundable.

The American Rescue Plan Act increased this credit, made some of the money available upfront, and made the entire credit refundable. The end of the expanded credit did not change the existing credit, so parents can still claim up to $2,000 per child when they file their 2022 tax returns.

To claim this credit, a tax return must be filed. The IRS will start accepting returns in late January, so you should act quickly to get the credit and use it to save money or pay for expenses.

 

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