Stimulus checks have been issued for quite a period now, and the authorities are looking for new ways to make the claims. While most of the claims are made with the tax refund, a few aspects still need to be focused on to ensure a proper claim.
The Internal Revenue Service has published updated instructions for claiming stimulus funds last year. Funds from the enhanced Child Tax Credit, specifically.
Child Tax Credit received by citizens
As part of the Biden administration’s American Rescue Plan, the child tax credit was increased from $2,000 to $3,600 per kid for those aged 5 and under and $3,000 for those aged 6 to 17. Half of the credit, $1,800 or $1,500, was paid in $300 or $250 monthly payments per kid from July to December 2021. The remaining can be claimed in 2022 when filing taxes for the year 2021.
Details of credit received
Many parents got half of their extended child tax credit in monthly installments, but the rest must be claimed upon filing, even if they don’t have to file a return owing to their income, as per the reports of AL.com.
Anyone owed a portion of their credit must file a 2021 tax return to claim it in 2022. The IRS’s new guideline aims to assist eligible parents in understanding their rights and responsibilities. Its main is to make the people understand tax when it comes to claiming the remaining credit balance on their tax returns so that they can get the entire amount of stimulus money due to them.
Latest IRS guidelines
The new IRS guideline, modified on March 8, 2022, refers to one sort of stimulus relief made possible by the American Rescue Plan Act. That’s the Child Tax Credit, which has been increased. This tax credit is worth $3,600 for children under six and $3,000 for older children.
Before the American Rescue Plan Act, the tax code granted a $500 nonrefundable credit for dependents who aren’t qualifying children, and the IRS has said that this credit is still available.