Time is running out for families to claim the enhanced child tax credit and other federal tax breaks that could net them hundreds, if not thousands of dollars. CNN reported that to get this cash boost, Americans need to submit their 2021 tax return with the deadline for filing set on Monday, April 18.
Most eligible families already received half of the child tax credit in monthly installments last year. Other Americans, however, particularly those in the very low-income bracket who are not required to file taxes, have yet to get their hands in any of these funds.
Parents can get the remaining amount of their 2021 tax returns. They will need to provide Letter 6419 that the Internal Revenue Service (IRS) mailed earlier this year. This document states how much families received in monthly child tax credit payments from July through December of last year and notes the number of children the federal agency used to calculate the credit.
$92 billion worth of child tax credit given to more than 36 million families
According to the IRS, more than 36 million families with more than 61 million kids received monthly payments for a total of more than $92 billion. The remaining amount families will be receiving may have to be adjusted, though, because the monthly payments were based on a family's income from a prior year. Adjustments would be in order if parents' earnings or the family size changed in 2021. Letter 6419 is critical to reconcile those numbers.
Americans who will miss Monday's deadline still have a shot at claiming the child tax credit and other credits as the government allows them to request an automatic six-month extension for the tax filing. Taxpayers can also receive these credits if they file a 2021 tax return within the next three years. Americans who are not required to file tax returns or do not owe money to the U.S. government generally will not face penalties.
Beefed-up child tax credit part of American Rescue Plan Act
Democrats decided to beef up the child tax credit to a maximum of $3,600 for each kid up to age six and $3,000 for each child ages six through 17 as part of the American Rescue Plan Act enacted back in March 2021. In the second half of last year, parents got part of the child tax credit, receiving up to $300 a month for younger kids and $250 for older children. That was the first time the child tax credit was delivered to families monthly.
The full enhanced credit is available for heads of households, who make up to $112,500 a year, and joint filers earning up to $150,000, after which it begins to phase out. For many American families, the tax credit then plateaus at $2,000 per kid and phases out for single parents who earn more than $200,000 or for married couples who generate incomes above $400,000.
