For those of you who moved, lost your job, got a raise, or had a new kid and missed the deadline, here’s what you need to do in order to access that money. The Child Tax Credit, which was passed as part of the 2021 coronavirus relief bill, has been a huge success. Eligible families were able to receive up to $300 per month for each child under the age of six, and up to $250 for each child between the ages of 6 to 17, per kid. The second half of the cash payment will come at tax-filing time. (It’s being done this way because the 2021 COVID-19 relief bill was passed in the middle of the year and payments started going out in July, meaning families got just 6 months of payments for a program that was planned to be 12 months.) The boost of money during this stressful time has kept families afloat and reduced poverty and hunger among kids. Now, as the year comes to an end, the final monthly cash payment is set to hit bank accounts on December 15. The deadline to make changes that would impact the payment (whether that’s making more money now or making less, moving, or having another child) has come and gone, but that money’s not lost, and any changes still need to be reported.
If you didn’t hit the deadline to make changes like having a new child or less income, here’s what to do.
Since the payment received for the Child Tax Credit is based on income, it’s important to notify the Internal Revenue Service if you’ve had a new child or if you’ve lost your job (or got a raise). If you lost your job you might qualify for a larger benefit, but what if you missed the deadline? Don’t worry – it’s still important to make the changes to your tax credit portal. Any additional money you should have been owed will be paid out during next year’s tax refund.
If you didn’t hit the deadline to reflect more income.
For parents who already receive the Child Tax Credit and missed the deadline to make changes to the tax portal, like making more money in a new job or getting a raise, it’s important to know that depending on those numbers, the difference may need to be paid out when 2022 tax filing season comes around because you may have received more money than allowed when the next installment hits your bank account around December 15th.
If you didn’t hit the deadline to apply for the December payment.
If you’ve not yet applied for the Child Tax Credit, the money that you would have been paid hasn’t gone anywhere. You’re still entitled to it, however, it won’t automatically show up in your account if you didn’t apply. All you have to do is file a tax return when the 2022 season rolls up because you can receive the full benefits as one lump sum at that time instead. You’ll receive up to $3,600 for every child under 6 and up to $3,000 for every child aged 6-17, based on your income, which is the same as the total pay monthly installments in the Child Tax Credit program.
Will there be a similar Child Tax Credit in 2022?
There’s no question that the Child Tax Credit program has been successful, and many parents would love to see the program continue into the next year. Since this was initially started as part of the coronavirus relief bill, it’s understandable that it may not be a long-term program, but there’s a chance it can go into next year as well. Recently the House of Representatives passed the Build Back Better Act, which also includes a single-year extension of the Child Tax Credit. Everything about the plan is the same except that for parents of higher incomes, the tax credit will come as a lump sum for the 2023 tax season. The Biden government is hoping to make this program fully refundable on a permanent basis, based on how well it has served the country this year.
