Update on the Child Tax Credit for 2021 – After the ‘Thanksgiving’ cash is distributed, families may receive a’surprise’ (dollar)8,000 stimulus payment.
In a surprising new stimulus payment, families in 2021 will be able to claim credits for expenses of up to (dollar)8,000 for one child and (dollar)16,000 for multiple children.
Transportation, housekeepers, babysitters, before and after school programs, as well as day camps and daycare programs, are all examples of qualifying expenses.
Furthermore, they can be used to care for dependents who are disabled.
Families with two or more children could only claim (dollar)6,000 in the past.
It comes after millions of families received a $300 stimulus check per child as part of November’s child tax credit payments.
The cash injection comes just days before the Thanksgiving holiday in the United States.
On November 15, the IRS distributed checks worth approximately (dollar)15 billion to approximately 36 million families.
For the most up-to-date information on the child tax credit, visit our blog…
IN JANUARY, PARENTS SHOULD EXPECT TO RECEIVE AN IRS LETTER.
The IRS will send letters in January detailing how much child tax credit each family received in 2021, and parents and caregivers should use that information when filing tax returns to ensure they receive the correct amount of money.
Those who have signed up for monthly payments but want to switch to a lump sum payment next year must do so at least two weeks before the payment dates.
WHAT WAS THE AMOUNT OF CTC PAYMENTS BEFORE THE EXPANSION?
Before the America Rescue Plan, or Covid-19, which began in March, families could receive up to (dollar)2,000 per month for each qualifying dependent.
Payments are currently (dollar)3,600 per dependent, with the expansion set to last until 2022 if the Build Back Better Agenda is passed.
WHEN CAN YOU EXPECT PAYMENTS IN NOVEMBER AND DECEMBER?
Those who had been receiving monthly payments of up to (dollar)300 should have received their fifth installment on November 15th.
They will either be deposited directly into your account or mailed to you in the form of a check.
On December 15, 2021, the final payment will be sent out.
After filing a 2021 tax return next year, the remaining half of the child tax credit will be processed.
BUY FOR THE LONG TERM
If your financial situation is stable without the tax credit payments, investing it for the future may be a good idea.
If you’re saving for your child’s college tuition or something else that will benefit him or her in the future, you might want to consider investing in a fund that will grow over time.
However, keep in mind that, as with any investment, there is no guarantee of profit.
Your assets’ value may even depreciate…
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