It’s becoming increasingly unlikely that the expanded Child Tax Credit will be extended as the country enters its second stimulus-free month. Economic Impact Payments have been discontinued, and it is highly unlikely that they will be reinstated.
This year’s tax season, however, there are still some leftovers to reheat, and for some families, the stimulus programmes of 2021 could add thousands of dollars to their refunds. We’ve compiled a list of four groups that qualify for a final round of stimulus funds this year.
Child Tax Credit Qualifying Households
Millions of Americans who were eligible for the $3,600 Child Tax Credit received only a portion of what they were owed in advance payments through December. When you file your taxes, you’ll receive the other half, up to an annual maximum of $1,800 per qualifying dependent.
Families in other states may be able to look forward to even greater financial rewards in the year 2022.
Some families were eligible for the full Child Tax Credit but did not receive it, or received only a portion of the credit. Many taxpayers in 2019 and 2020 failed to do so, as reported by CNET. The IRS didn’t have enough information in those cases to figure out their credit or send them a check to cover their tax debt. People who lived in the United States for less than half of the year and were disqualified by the IRS despite having a primary residence in the United States were among the rarest and most obscure cases. In some cases, people consciously chose not to accept the payments in advance.
All eligible families will receive $3,600 per dependent under the age of six and $3,000 for children over the age of six.
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Households With Children In 2021
Families with children who were born, adopted, or fostered in 2021 will receive the second half of their Child Tax Credit payments in 2022, which will be a welcome relief for many Americans.
Most Americans and their families received $1,400 in the third stimulus payment round. The payments were already calculated and distributed to many families when they had children last year. Refunds due to new parents will be available for them to claim in 2021 when they file their tax returns.
New parents who are also eligible for the expanded Child Tax Credit will be able to add an additional $3,000 to their refunds this year because of this.
Payments Owed To People But Not Received
People who were eligible for Economic Impact Payments but did not receive their $1,400 American Rescue Plan payment in 2021 were a much smaller percentage of the eligible population. A number of payments were missed due to clerical errors such as incorrect addresses or routing numbers, while others were meant for people who were on the move and didn’t have bank accounts or fixed addresses.
That doesn’t mean they’re doomed. Eligible filers must claim the Recovery Rebate Credit on their 2021 tax returns in order to receive the payment.
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In 2021, Those Whose Income Decreased
People who file jointly with their spouse are only allowed to receive the third round of stimulus payments if their combined income does not exceed $75,000. Based on their 2020 tax returns, the IRS either issued payments or disqualified taxpayers.
Some people may still be able to claim their $1,400 payment even if their income falls below the income-cap threshold in 2021, according to CNBC. Individuals who made $85,000 in 2020 but only $60,000 in 2021 are eligible for the third stimulus payment, which will be paid out to them retroactively.
Taxpayers in this situation would have to use the Recovery Rebate Credit to get a refund of the $1,400 they received.