Mother and father Should File Tax Returns by Could 17 Deadline to Qualify – NBC Chicago
American families could receive payments from the new $ 3,000 child tax credit as early as July. However, for this to be possible, parents must file their individual income tax by May 17, even if they did not have to report any income.
The widespread child tax credit was included in the US $ 1.9 trillion bailout plan signed by President Joe Biden in March. Under the law, families will receive an annual benefit of $ 3,000 per child ages 6-17 and $ 3,600 per child under 6 years of age for the 2021 tax year.
In a press release Friday, Illinois governor JB Pritzker encouraged families in need of help to apply “to ensure they are getting the relief they deserve”.
The full loan amount is available to those with children who have an Adjusted Gross Income of less than $ 75,000 or $ 150,000 for a married couple applying together. The additional benefit will no longer be filed for taxpayers making more money and will no longer be filed for those earning $ 95,000 and married couples earning $ 170,000.
The extended credit will be paid out monthly until December 2021. The monthly amounts are typically $ 250 for older children and $ 300 for children under six. Families will draw the remaining half of the loan when they file their 2021 income tax return.
There is no limit to the number of children in a family who can receive the credit as long as they meet the age and income eligibility requirements.
According to a study by the Institute for Taxes and Economic Policy, around 83 million children live in households that would benefit from the expansion of the child tax credit. In addition, the poorest 20% of families would see an income increase of more than 37% in the year the policy is introduced.
Qualifications for the Child Tax Credit 2021 include:
• Income of $ 112,500 when filing as Head of Household
• Income less than $ 150,000 for joint submission
• Income less than $ 75,000 for a single applicant
• Reduced credit may be available to taxpayers with income above the threshold.
• Filer must have provided at least half of the child’s maintenance in the last year
• The child must have lived with a tax advisor for at least six months or more
• Filing individual income taxes for 2020 by May 17th
• If the taxpayer has already filed taxes, an amendment can be filed
• If a taxpayer cannot submit an application by May 17th, an application for an extension can be made
Source: Illinois Department of the Treasury