What is Child Tax Credit?
Child Tax Credit (CTC) for 202q was a part of the American Rescue Plan Act (ARPA) that is signed up into law by President Biden for more families to get pandemic cash assistance.
Here’s what you need to know about ARPA:
- Credit will increase from up to $2,000 per qualifying child in 2020 to up to $3,600 for each qualifying child under the age of 6.
- Credit will increase from up to $2,000 per qualifying child in 2020 to up to $3,000 for each qualifying child ages 6 to 16.
- 17-year-olds are now eligible for up to $3,000 in credit.
- The IRS began sending the first-ever monthly payments, to get money to families sooner (up to half of your total amount) starting in July 2021.
Now, how to get the rest of the credit?
If you file a tax return for 2021, it is the only way to get the full amount of any remaining Child Tax Credit for which you are eligible. When you are ready to file a tax return, you can always visit childtaxcredit.gov and find free assistance for filing and receiving your Child Tax Credit.
What will happen if I didn’t file taxes last year?
You are still eligible to claim any Child Tax Credit benefits you are eligible for even if you did not file your taxes last year. If you did not file your tax return for 2019 and 2020, you probably did not receive the monthly Child Tax Credit payment in 2021, this was because the government did not identify who and how much assistance filing for the Child Tax Credit.