If you have children, you could receive a lump sum IRS Tax Credit worth up to $3,600. Here’s how you qualify.
The money is part of the Child Tax Credit program that the White House rolled out last year. In July, most parents or guardians began receiving monthly payments of $250 to $300 per child, depending on their ages.
Those payments equaled half of the overall amount that parents are due. And the other half will come back with people’s 2021 tax returns. Though some parents opted out of the monthly checks so they could receive the full amount at tax time.
Overall, many families with children aged 6-17 are entitled to $3000 per qualifying kid. And younger children will bring in a total of $3,600.
However, the payments begin to lower if families reach a certain tax bracket.
According to the IRS, the tax credit reduces to 2,000 per child with the following incomes:
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $112,500 if filing as head of household; or
- $75,000 if you are a single filer or are married and filing a separate return.
And if a married couple that is filing jointly earns $400,000 or more, the IRS will take another $50 for each $1,000 owed. The same is true for people making $200,000 in all other filing statuses.
IRS Tax Credit: Be on Lookout for Specific IRS Letter
To get your full or remaining Child Tax Credit, you’ll need specific information when you file your 2021 tax return. And that information will be mailed to you by the IRS.
The Internal Revenu Service is currently working on sending a Letter 6419 to all families who have or will receive the credit.
As of today, most people should have their letters, but some may not find theirs until tomorrow (Jan. 31st). When you receive yours, be sure you don’t lose it.
Letter 6419 displays exactly how much money you’ve already been paid. And it will include instructions on calculating how much more you’ll get.
Upon opening the letter, you’ll need to check that all of the information is correct. If you had or adopted a child last year, the IRS won’t include the new dependent in the calculations on its own. You’ll have to update that when you file.
If you happen to lose your 6419, don’t worry. You may have to wait to file, but the IRS can send another letter if you contact them at 1-800-829-1040. Or if you’d rather, you can access all the information on the child tax credit portal.
