IRS Releases Tax Information for Stimulus Checks, Child Tax Reductions – Community News
Stimulus Check

IRS Releases Tax Information for Stimulus Checks, Child Tax Reductions

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(KTLA) — The 2021 tax filing deadline is still months away, but the IRS on Tuesday encouraged taxpayers to get ahead of the curve when preparing their returns — especially those who may need to take action regarding certain payments from the government. federal government.

These include both the popular economic impact payments and child tax advances, the agency said.

Here’s a look at what the IRS wants taxpayers to know about both programs:

Payments with economic impact

The third and final round of federal stimulus checks began in March, but some eligible people got nothing or received less than the full $1,400.

They may qualify for the chargeback credit, as long as their 2021 tax information falls under the guidelines of those entitled to the federal government’s COVID-19 relief program, according to an IRS press release.

Anyone who believes they qualify for the credit must first file a 2021 tax return, whether or not they typically file one. They will also need to report how much they received for the third stimulus check — including any additional payments — to find out how much more they owe.

“By making sure they use the correct payment amounts, they can avoid a processing delay that can delay their refund,” the IRS says.

Individuals can access information about their payment amounts for economic impacts here. You will also find more information about the recovery discount credit here.

(Note: The IRS information only affects federal stimulus checks and not those sent by states such as California.)

Child Tax Credit Payments

Child tax credit advance payments began in mid-July to tens of millions of eligible households and will be paid in up to six monthly installments through the end of 2021. (The final payment is expected to be made Dec. 15.) Families received up to $300 per eligible child under 6 and $250 for each eligible child between 6 and 17 years old.

However, because the amounts were primarily based on 2019 or 2020 tax returns — which were the latest in the IRS’s records — some people may have gotten more or less than they actually qualified for this year, according to the IRS.

Anyone who raised too much may have to repay some — or even all — of the advance, the federal agency says. At the other end of the spectrum, people who received less than they earned can claim the remaining amount when they file their 2021 taxes.

Because only the first six months of the child tax credit have been paid in advance, the last half of this will be reclaimed on the 2021 tax return. Some parents have completely withdrawn from the advance payments and can recover the amount they owe in one go.

Ultimately, “families who have received advances should compare the child tax credit advance payments they received in 2021 with the amount of child tax credit they can correctly claim on their 2021 tax returns,” according to the IRS’s website.

(More information about combining the two can be found here.)

The IRS has created a special page for taxpayers listing actions that can be taken to simplify the filing process next year.