Child Tax Credit Update: IRS to Release Refund by March 1, 2022

Many persons in the United States have benefited from the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), yet some are still owed a refund.

If you filed your return online, elected to receive your refund by direct deposit, and there were no difficulties with your return, you can collect a refund before March 1, 2022. However, you may get your refund a few days before the deadline.

Amount expected to receive

The enhanced child tax credit is expected to bring in additional money for parents this year. While the monthly advance payments are terminated in December, the rest of the child tax credit money will be delivered to eligible parents with their 2021 tax returns in 2022. Individuals who opted out last year include up to $1,800 per child under the age of six or $1,500 for each child aged six to seventeen, or up to $3,600 per child under six or $3,000 per child six to seventeen, as per CNET.

The number of children eligible for the extended child tax credit is unlimited, but the amount of credit you receive is determined by your income level. For solo taxpayers, the credit starts at $75,000, and for married couples filing jointly, it starts at $150,000. At $220,000 and $440,000, respectively, it is phased out.

According to the IRS, it is also possible that your bank will take a while to accept your direct deposit or issue a debit card. On weekends and holidays, many financial institutions do not accept payments. So, if you submit early, keep in mind that federal and state holidays may delay your refund.

Check the status of your refund

Marca wrote, because of the law, the IRS cannot provide EITC or ACTC refunds before mid-February, and this includes your full refund, not just the portion related to the tax credit you claimed on your return. It’s possible that if you’re one of the people who claimed the EITC or ACTC, the IRS will want to know more about your return. You will be emailed a letter if this is the case.

To check the status of your return, you can use the IRS2GO app or a ‘Where’s My Refund’ service to find out where it is. For example, if you were able to submit your taxes ahead of schedule, you should be able to deposit your EITC/ACTC applications by February 19th.

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