This 2021 Tax Credit Could Put Money In Your Wallet

Benefits of Utilizing Schedule R When Filing Taxes

(FinancialHealth.net)- There’s a new 2021 tax credit that could put money in your wallet. One of the many recent changes to come from pandemic legislation has been a brand-new 2021 child tax credit. But who qualifies for this payment and what do we need to know about it?

#1 You Must File A Return

You’ll need to file a tax return–even if you’re traditionally a non-filer. You may qualify for this credit even if you didn’t earn income, but you have to file for the IRS to issue a payment. File before May 17th to avoid missing out on this payment.

#2  There Are Income Qualifications

Here are the income qualifications to receive the 2021 child tax credit. Children age five and younger could receive up to $3,600 each while children over the age of six qualify for up to $3,000. The income qualifications are as follows:

Who qualifies What the law says
Single filer An AGI of $75,000 or less to qualify for the full amount
Head of household An AGI of $112,500 or less to qualify for the full amount
Couple filing jointly An AGI of $150,000 or less to qualify for the full amount
Child age 5 and younger Credit for $3,600 each if parent/guardian meets above requirements
Child age 6-17 Credit for $3,000 each if parent/guardian meets above requirements
Nonfiler Will need to file a 2020 tax return to get the payment

 

#3 Expect Split Payments

These payments are unlikely to come all at once. From what we understand of the legislation, the 2021 child tax credit payments will be issued through the end of 2021 and into 2022. While other stimulus checks have come in a lump sum payment, the government plans to issue this child tax credit in split payments instead.

Parents won’t want to miss out on this substantial credit. To qualify, don’t forget to file a return. While official dates of these payments are still pending, it has been confirmed that the payments will begin to be issued in July of this year.

~Here’s to your Financial Health!

Copyright 2021, FinancialHealth.net

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