Known as “plus-up” payments, the money automatically goes to people whose 2020 tax returns show they missed when the first two sets of checks – which were sent based on the tax returns. of 2019 – have been released. More than 8 million people received these additional payments this year.
More money is on the way for families with children
The pandemic assistance program adopted in March also increased the amount of the child tax credit. These payments will be sent periodically starting July 15th.
More than 36 million families could be eligible for the payments. Most will not have to do anything to receive the money, which will be based on the information provided on the 2020 or 2019 tax returns.
These payments will technically constitute an advance on a 2021 tax credit. Eligible parents will receive $ 3,600 for each child under age 6 and $ 3,000 for each child under age 18. Until now, the credit could only reach $ 2,000 per child under 17. At least half of the amount will be paid over the summer, and the rest will go into next year’s tax refund.
The enhanced portion of the credit will be available to single parents with an annual income of up to $ 75,000 and joint tax filers earning up to $ 150,000 per year.
Congress also made the child tax credit fully refundable so that more low-income families could benefit from it. Previously, if the credit exceeded the taxes owed, parents could only receive a maximum of $ 1,400 in reimbursement. These households must also have earned an income of at least $ 2,500. The change could make 20 million more children eligible.