With three payments remaining in 2021, will the child tax credit expire or be extended?
After today's check, three monthly payments remain in 2021, with another amount next year. There is a possibility that the enhanced credit will continue until 2025.
Expect monthly payments through December, plus a payout during next year's tax season. If you want to receive the monthly payments, you'll receive 50% of the total credit in six monthly installments and the rest with a tax refund in 2022. That means up to $3,000 per year for each child between the ages of 6 and 17, and up to $3,600 per year for each under 6 - fully refundable.
And there's an opportunity to extend the rolling interest into 2025. The latest House Democratic legislation proposes it become part of a massive $3.5 trillion spending plan, catering to low-income families. But until the bill is final, there are still several deadlines for the rest of this year.
After today's payment, there are three more rounds of partial payments made to send to eligibles. The IRS sent more than $30 billion in July and August installments, 80% of which were direct deposits; The rest went as checks in the mail.
Here are the payment dates to track from October to December 2021 and in 2022:
How about filing taxes next year?
After you receive any monthly payments the IRS sends you this year, you will receive the rest of your money will come with your tax refund in 2022 after you file your 2021 tax return next spring. Although the IRS has extended tax filing dates for 2020 and 2021 due to the pandemic, you usually have from the end of January to April 15 to file.
What are the deadlines for withdrawing advance checks?
If you decide to opt-out of your monthly payments this year, you still have plenty of time to view the remainder of your child's tax credit money for the next tax season.
IRS opt-out deadlines are approximately two weeks before payment dates. If you miss one deadline for one round of checks, the changes will occur in the next round. These are the same deadlines you have to meet to make other changes to your account, such as adding your bank information or changing your mailing address. While the updated portal does not yet allow you to change your income, marital status, and several dependents, you should be able to do so before the October payment.
The IRS said that if you cancel your enrollment and then change your mind later, you'll be able to re-enroll sometime in late September.
Here are the remaining dates when you will need to deregister:
You can no longer opt-out of the September batch.
October 4 (for October batch)
November 1 (for the November batch)
November 29 (for the December batch)
Will Child Tax Credit Payments Be Extended?
Given the program's popularity with millions of families, extending the extended credit for at least a few years is an opportunity. House Democrats recently came up with a proposal to keep the benefits increase going through 2025.
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