Advanced Child Tax Credits set to begin July 15, what you need to know
AUGUSTA COUNTY, Va. (WHSV) - Many families in the Valley will start seeing the Advance Child Tax Credit as soon as next week.
Anyone who has claimed a dependent under the age of 18 on a 2019 or 2020 tax return will automatically receive payments starting July 15.
“Before, the child tax credit maximum was $2,000 a year. Now it is as much as $3,600 depending on the age of the child,” Dan Sullivan, Lead Volunteer for the United Way Valley VITA program, said.
The payments will be up to $300 per month for each child under the age of six and up to $250 for children ages six through 17.
“They’ll receive the part they would have gotten for each month going forward and the remainder of it when they do their tax return next spring,” Sullivan explained.
Another big change this year is that you don’t need to have income in order to receive the child tax credit.
“It does phase out for a single person at $75,000 going up in income and at $150,000 for a married couple. Most people are going to be eligible for it, particularly the individuals that are able to use our service,” Sullivan said.
But the credits must be paid back if you get payments for any child who you will not claim on your 2021 tax return.
To avoid owing back money, you’ll need to unenroll from payments. The next deadline to opt-out of payments is August 2.
If you are claiming a child on your 2021 tax return that you did not claim previously, you will need to make sure the IRS is aware of that as well by going to the IRS website or filing a 2020 return.
Payments not made in advance could also be collected as a refund after filing a 2021 return.
The United Way Valley VITA program saw an increase of the number of tax returns they helped file this past year.
“We did over 1,200 this year, which is pretty significant. and expect a number more coming forward because people will want to be able to claim that credit in advance,” Sullivan said.
He says he believes the credits will help many families across the Valley.
“Because individuals don’t have the income, in many cases, that they had before, and the unemployment benefit, although it has been relatively generous, in many cases it doesn’t make up for what families were making prior to the pandemic,” Sullivan said.
For further information regarding the Child Tax Credits, please contact Dan Sullivan at (540) 885-1229, ext. 5. Or email@example.com.
Copyright 2021 WHSV. All rights reserved.