Child Tax Credit is a benefit granted for taxpayers in America for each qualifying child. Children who are qualified and eligible for such tax credit must be dependent on the taxpayer. Since having a family is as financially challenging as running a business, this rule has been helping the families of the taxpayers in terms of financial support and freedom. This rule has been expanded by the American Rescue Plan Act of 2021.
Just recently, an important change was made to this writing granting taxpayers advance payments. The Internal Revenue Services (IRS) will perform advance payments of 50% of the estimated amount of the child tax credit that one can claim on his or her 2021 tax return. If the IRS processed the taxpayer’s 2020 or 2019 tax return, there will be monthly payments starting July to December, based on the information contained in the return.
It is necessary that you have filed your 2019 or 2020 tax return to be eligible for the child tax credit advance payments. But if in any case that you have not filed for those two years, the IRS has created an online tool for you to be able to have a simplified tax return. This will then make you an eligible candidate for the tax credit. Once you have filed your returns electronically, the financial information in your return will be the account where the IRS will do direct deposits for your advance payments.
The good thing about this is that there’s no minimum revenue required for you to be eligible for the advance child tax credit. Even if you don’t have any income, you can receive such benefits. You just have to ensure that you have a qualifying dependent child. Aside from this, you have to ensure that you or your spouse must have your main home in one of the 50 states of America or the District of Colombia for more than 6 months.
The IRS will release several information drives via social media platforms or emails. They urge employees and/or business owners to share this critical information in order to expand the benefit scope of this wonderful initiative. This write-up made by Fresh Start Business is our way to inform you to file your returns and start checking your eligibility for such tax benefits!