![]() Most charities apply, according to the IRS. The IRS again is allowing taxpayers who don’t itemize to claim a deduction of up to $300 (or $600 for married couples filing jointly) for filers who made charitable contributions in 2021. Some of those forms may include incorrect information. They may have to pay some of that money back.įamilies who received payments should have received a notice - "Letter 6419, 2021 advance CTC" - letting them know for tax filing purposes how much they've been paid. Many families saw their income plummet during the pandemic but rebound as their jobs returned, and they may have received more than they should have in child tax credits. Here's another scenario that could complicate tax returns. ![]() Because the tax credit payments were based on 2020 tax returns, they may or may not have gone to the parent with physical custody in 2021.Ī parent who did not have physical custody in 2021, but who received the tax credit payments, could have to pay back at least part of that money. Those who received the payment from July-December must file a tax return to get the credit for the first six months of 2021, again, regardless of the family's tax filing history.ĭivorced parents who share custody of their children often switch who claims the child tax credit each year when they file their returns. That means families who didn't receive any of the advance tax credit payments during 2021 can claim the full amount of the credit on their tax returns. ![]() To get all or the rest of the money due from the tax credit, parents need to file an income tax return - even if they've never done so before or don't owe any taxes. Read more: How The Child Tax Credit May Affect 2022 Refundįamilies whose adjusted gross income was at $150,000 or below for married couples (or $75,000 for single-filer parents) are eligible for the credit. Monthly, that amounted to between $250 and $300 per child. The tax credits, part of President Joe Biden's $1.9 trillion coronavirus relief program, increased payments to up to $3,600 annually for each child age 5 or younger, and $3,000 for those 6-17. The IRS says it is seeing confusion about how the advance child care tax credit - in effect, an advance on their refunds - applies to their individual situations. Advance Child Care Credit Causes Confusion Head of household filers who had incomes above $120,000 but less in 2021.ģ. Married couples filing a joining return whose combined incomes were more than $160,000, but less in 2021 Single filers who earned at least $80,000 in 2020, but less in 2021 Others who can claim the $1,400 credit include people who saw their income drop in 2021. It can also be applied if an adult became a qualifying relative, such as a parent, nephew or niece, or grandchild became a qualifying relative in 2021, but had not previously been listed as one on tax returns. Parents of a child born or adopted in 2021, as well as those who fostered children last year, may be able to receive up to $1,400 per child. ![]() So far, the IRS has paid out about $204 billion in refunds. Refunds are running about $3,226 on average this year - about $333 more than last year, for an 11.5 percent increase. Taxpayers who have filed are, on average, receiving larger refunds, according to the IRS. Delaware, Iowa, Louisiana, Maine, Massachusetts and Virginia set their own deadlines. The deadline this year for all but a handful of states is April 18. impact the tax deadlines for the entire country, as do other federal holidays. Typically, April 15 is Tax Day, but the Emancipation Day holiday in the District of Columbia is observed on that day. About 91 million Americans have filed already, about 2.1 percent fewer than this time last year, according to the Internal Revenue Service. And if you're a late filer, you're not alone. ARIZONA - The income tax filing deadline in Arizona is quickly approaching, but if you haven't filed yet, you've got three more days than usual, with the filing deadline this year on April 18.
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