The American Rescue Plan Act of 2021 now allows child tax credits to be collected monthly, in advance of 2021 taxes. Depending on the age of your children, this Child Tax Credit gives families $3,000 per dependent child ages 6 to 17 and $3,600 per child ages 5 and below for the 2021 tax year.
Want to know why it is considered a “tax credit?” It is because the money you’re getting back is actually money you paid for in other taxes.
So you may be wondering now if your family qualifies?
In order for your child to count for the credit, he or she must be a U.S. citizen, you must claim them as a dependent, and they must live with you at least 6 months out of the year.
But another factor is your household income.
Tax attorney Mary King of Mary E. King PL weighs in. She says:
“If your modified adjusted gross income is below $150,000 as a married couple filing jointly, or if you’re filing as an individual, and your income is $75,000 or below, you will receive the full tax credit. The IRS will use your last tax return to determine whether or not you qualify based on your adjusted gross income and the age of your children.”
King further states that it is important to know that half the total credit amount is being paid in advance monthly payments and you can claim the other half when you file your 2021 income tax return in 2022.
Advance payments are sent automatically to eligible families and you do not need to take any action if your tax information is on file with the IRS.
But if you have any questions about this tax credit issue or anything else tax related, you should contact an experienced tax attorney.
Mary King will help you with sound advice, and provide the knowledge and the guidance you need. Call Mary King at 941-906-7585 or visit taxlawyerflorida.com.