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Among the many government stimulus programs launched to help Americans weather the COVID-19 pandemic, one of the most effective was an expanded Child Tax Credit (CTC) that provided families with higher-than-normal payments.
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This program, which is part of the American Rescue Plan Act 2021, allows families to receive up to $3,600 per child under age 6 and $3,000 for children ages 6 to 17. These changes were only made for one year, however, and payments will be reinstated. back to $2,000 per child in 2023, CBS Los Angeles reported.
If you haven’t taken advantage of the expanded CTC yet, there are still a few ways to do so. As previously reported by GOBankingRates, if you applied for an income tax extension on April 18, 2022, you have until the midnight tax filing deadline on October 17 to complete your 2021 taxes and claim your CTC. expanded.
To claim the CTC, you will need to enter the details of your children and other dependents on Form 1040 (US Personal Income Tax Return) and attach a completed Schedule 8812 (credits for eligible children and other dependents ).
If you elected to receive part of your CTC benefits via advance payments in the second half of 2021, you will need to file by October 17 to receive the remainder. To calculate the amount to claim, consult your Letter 6419 (Advance Child Tax Credit Reconciliation), which was sent by the IRS to eligible taxpayers in late 2021 or early 2022.
If you haven’t yet filed a tax return, you have until Nov. 15 to do so and submit your information for the CTC’s expanded funds, CNBC reported. The government even provided a simplified tool — GetCTC.org — designed to make it easier for eligible families to obtain the CTC.
“The money is there; the money is yours. You have until November 15 — don’t wait,” Gabriel Zucker, deputy policy director for tax benefits at Code for America, told CNBC.
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As reported by Fox 9 in Minneapolis, the expanded CTC helped reduce child poverty from 9.7% in 2020 to 5.2% in 2021, as measured by the US Census Bureau’s Supplemental Poverty Measure. This is the lowest rate since the new measure was introduced in 2009.
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