El Osceola Star
. June 25 - July 08, 2021.11
IRS - News IRS announces two new online tools to help families manage Child Tax Credit payments WASHINGTON - The Internal Revenue Service launched two new online tools designed to help families manage and monitor monthly advance payments of the Child Tax Credit under the American Rescue Plan. These two new tools are in addition to the Non-filer Sign-up tool, announced last week, so families who don't normally have to file a tax return can quickly sign up for the Child Tax Credit. The new Child Tax Credit Eligibility Wizard allows families to answer a series of questions to quickly determine if it is for the credit in advance. The Child Tax Credit Update Portal allows families to verify their eligibility for payments and, if they wish, cancel enrollment or opt out of monthly payments so they can receive a lump sum when they file their tax return next year. This secure, password-protected tool is available to any eligible family with Internet access and a smartphone or computer. Future versions of the tool planned for the summer and fall will allow people to view their payment history, adjust bank account information or email addresses, and other functions. A Spanish version is also planned. Both the Child Tax Credit Eligibility Wizard and the Child Tax Credit Update Portal are now available on IRS.gov. The American Rescue Plan increased the maximum amount of the Child Tax Credit in 2021 to $3,600 per child for children under age 6 and to $3,000 per child for children ages 6 to 17. Advance payments of the Child Tax Credit, generally due on the 15th of each month, create financial certainty for families to plan their budgets. Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 to 17. On July 15, the first monthly payment of the extended Child Tax Credit will be made. Most families will automatically begin receiving monthly payments the next month with no further action required. Update portal allows people to unsubscribe Instead of receiving these payments up front, some families may prefer to wait until the end of the year and receive the full credit as a refund when they file their 2021 return. The Child Tax Credit Update Portal now allows these families to unenroll from monthly payments quickly and easily. The cancel feature can also be useful for any family that no longer qualifies for the Child Tax Credit or believes they will not qualify when they file their 2021 return. This could happen if, for example: • Your income in 2021 is too high to qualify for credit. • Someone else (a former spouse or other family member, for example) now qualifies to claim your child or children as dependents.
• They lived abroad for most or all of 2021. Changes to the Child Tax Credit The American Rescue Plan raised the maximum Child Tax Credit in 2021 to $3,600 for qualifying children under age 6 and to $3,000 per child for qualifying children ages 6 to 17. Before 2021, the credit was worth up to $ 2,000 per eligible qualifying child and 17-year-olds were not considered qualifying children for the credit.
The new maximum credit is available to taxpayers with a modified adjusted gross income (AGI) of: • $75,000 or less for single people, • $112,500 or less for heads of household and • $150,000 or less for married couples filing jointly and for qualified widows and widowers. For most people, the modified AGI is
the amount shown on line 11 of your 2020 Form 1040 or 1040-SR. Above these income thresholds, the additional amount above the original credit of $ 2,000, either $1,000 or $1,600 per child, it is reduced by $ 50 for each additional $1,000 in modified AGI. Plus, all of the credit is fully refundable by 2021. This means eligible families can get it, even if they don't owe federal taxes. Before this year, the refundable portion was limited to $ 1,400 per child.
