As part of the American Rescue Plan, many parents and guardians are eligible for the Child Tax Credit, and many people are eligible for the Earned Income Tax Credit.
What is the Child Tax Credit?
According to the IRS-Child Tax Credit webpage, the Child Tax Credit is a fully refundable tax credit for families with qualifying children. The American Rescue Plan expanded the Child Tax Credit for 2021 to help more families.
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• Parents and legal guardians can receive $3,000 or $3,600 per child between ages 0 and 17, depending on the child's age.
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• All eligible families can receive full credit if they make less than $150,000 for a married couple or $112,500 for a single parent in 2021.
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• The Child Tax Credit, including the monthly payments received last year, is a tax cut. It is not income that will be taxed.
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• Receiving the Child Tax Credit will have no impact on anyone’s eligibility or lower the amount of other federal benefits.
Also, families, including those who received part of their Child Tax Credit as monthly payments last year, can get their remaining Child Tax Credit by filing a tax return this year. If they did not receive monthly Child Tax Credit payments, they will receive full credit amount when they file their tax returns.
You can determine if you are eligible here or find free resources to help you get your Child Tax Credit.
What is the Earned Income Tax Credit (EITC)?
According to the IRS-EITC webpage, it helps low to moderate-income workers and families get a tax break, with or without children. If they qualify, they can use the credit to reduce the taxes they owe – and maybe increase their refund.
To review additional EITC information or to see if you qualify, click here.
If I'm eligible for the Child Tax Credit and EITC, can I receive money from both?
If you qualify for the Child Tax Credit and/or EITC, you will need to file your taxes by Monday, April 18, 2022, to receive full benefits the soonest.
For information on how to get free assistance filing your taxes, Go to ChildTaxCredit.gov.