Although new government stimulus checks are doubtful, you may be eligible for a few of benefits this tax season. If not previously claimed, these coronavirus stimulus check tax credits might be quite valuable, particularly because the coronavirus epidemic is still ongoing. The Child Tax Credit (CTC) and the Earned Income Tax Credit (EITC) are two credits that are accessible to anybody, even whether they receive Social Security Supplemental Income (SSI) or don’t file a tax return on a regular basis.
Tax Credits For Recipients Of Coronavirus Stimulus Checks
The American Rescue Plan Act of 2021 increased the child tax credit to $3,600 for children under the age of six and $3,000 for children from six to seventeen. Furthermore, from July to December 2021, half of this credit was sent to qualifying households in equal monthly payments. The remaining half of the credit is accessible when you file your tax return.
Even if you get Social Security Supplemental Income, you may claim the entire child tax credit amount this year if you did not receive the monthly benefit last year.
It’s worth noting that the size of your child tax credit has no bearing on your Social Security payments. This implies that if you receive SSI, any child tax credit you get will not be included as income for the next twelve months for determining your SSI eligibility.
The idea is that the Social Security Administration (SSA) wants to know that you are in need of assistance. Saving credit money in your bank account for more than a year may preclude you from receiving social assistance.
Is The EITC Another Benefit You Can Claim?
The EITC is the second credit you should be aware of during tax season (Earned Income Tax Credit). Low-to-moderate-income employees and families may benefit from the Earned Income Tax Credit (EITC). Those who qualify for this credit may utilize it to reduce their taxes, which will boost their tax refund.
Those who receive Social Security or SSI may also receive the EITC, and their EITC eligibility is unaffected by their Social Security or SSI payments. In order to claim the EITC, you must also submit your 2021 tax return.
If you claim the EITC, however, your tax refund may be delayed. By law, the IRS cannot disburse EITC and ACTC reimbursements until mid-February, according to the IRS.
“If they choose direct deposit and there are no other concerns with their tax return, the IRS anticipates most EITC/Additional CTC related refunds to be accessible in taxpayer bank accounts or on debit cards by March 1,” the IRS said.
The EITC amount for the tax year 2021 varies from $1,502 to $6,728 based on your income, dependents, and tax-filing status. You may claim your EITC based on your 2019 income (rather than your 2021 income), but only if your 2019 income is higher than your 2021 income.