The Internal Revenue Service (IRS) is officially taking tax filings for 2021, and parents who qualify for the child tax credit can begin claiming it right away, or submit for the second half of the $3,600 credit if they obtained advance payments last year.
The U.S. Sun reported that last year, more than 36 million families in the United States got advance monthly payments totaling almost $16 billion.
Families that received advance payments are entitled to get the second $1,800 when they file their 2021 tax forms.
Furthermore, families that did not get monthly payments last year may be able to claim the whole $3,600 when filing their taxes this year.
Families with newborns
Some couples had not welcomed a newborn by the time the American Rescue Plan was brought into law, resulting in the addition of a new dependent to the family in 2021.
According to KOMO-TV, a Seattle, Washington ABC affiliate, those parents will be able to claim the extra $1,400 payout on their taxes for the year.
Families who were bearing a child at the time the Plan was passed into law but had not yet given birth will not be excluded.
Instead, parents must tell the IRS when filing their 2021 tax returns in order to report the new dependent to the government.
The IRS typically begins taking income tax returns in January, and submitting early in the tax season may result in a reduced wait period.
They estimate that if you complete your return electronically, your refund will be provided in less than three weeks, and even sooner if you choose direct deposit. If you file a paper return, you should anticipate waiting six to eight weeks for your refund.
Meanwhile, lawmakers and the Biden administration are still debating whether to resume monthly payments after the IRS sends the final advance child tax credit payout on December 15, 2021.