A new initiative has been unveiled, promising to increase tax refund amounts for qualifying taxpayers. This program seeks to offer further financial support to individuals and families by boosting their tax refunds. Below, we provide essential details about the program, including eligibility requirements and payment schedules.
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Extra Tax Refund Money
The American Rescue Plan delivers unprecedented relief to working families with its record-high Child Tax Credit. Families can receive up to $2,000 per child, though it’s important to note that only a portion of this amount is refundable.
If you qualify for the Child Tax Credit but cannot claim the full amount due to a lower tax liability, you may still be eligible for a portion of the credit. This additional refund is known as the Refundable Additional Child Tax Credit.
This additional tax credit allows parents to potentially increase their refund and reduce their tax liability, helping to alleviate some of their expenses. For more details on the Extra Tax Refund Money Under the Child Tax Credit, continue reading below.
Extra Tax Refund Money Under Child Tax Credit
The Additional Child Tax Credit is a benefit designed to reduce taxpayers’ overall tax liabilities. Eligible families who owe less in taxes than the amount of their Child Tax Credit can claim this benefit. It refunds any unused portion of the Child Tax Credit up to an inflation-adjusted limit.
Families might qualify for a refundable tax benefit known as the Additional Child Tax Credit. In 2023, this credit could be refundable for up to $1,600 per eligible child if certain conditions are met. The refundable amount is set to increase to $1,700 in 2024. To claim this refund, filers must complete Schedule 8812.
Who is Eligible For Extra Tax Refund Money ?
Eligibility for the Extra Tax Refund Money Under Child Tax Credit is generally broad, but certain criteria must be met:
| Eligibility Criteria | Details |
|---|---|
| Age of Child | The child must not turn 17 by the end of the tax year. |
| Relationship | The child can be your niece, nephew, grandchild, brother, sister, stepbrother, foster child, son, or daughter. |
| Dependency | The child must be claimed as a dependent on your tax return. |
| Self-Support | The child’s self-support does not exceed fifty percent. |
| Residency | The child must have lived with you for the majority of the year. |
| Citizenship | The child must be a U.S. citizen, national, or resident alien. |
| Tax Filing | The child should not file a joint return with anyone else unless the sole purpose is to claim a refund of withheld taxes or anticipated taxes paid. |
The Child Tax Credit and Additional Child Tax Credit primarily benefit working parents with low to moderate incomes. For specific questions about your situation, visit irs.gov.
Payment Dates
The IRS has announced that most Extra Tax Refund Money should be available in bank accounts or on debit cards by December 27, provided that direct deposit is selected and there are no issues with the tax return. Some early payments may be processed a few days before this date.
Reasons for Potential Delays:
- Due to legislative constraints designed to prevent fraudulent returns, the Internal Revenue Service is unable to release refunds for earned income tax credit and extra child tax credit before the middle of December.
For Specific Refund Dates:
- Checking the status of your refund may be done by using the Where’s My Refund? feature. For the majority of early filers of EITC and ACTC refunds, this tool will be updated with projected deposit dates by the 17th of December.
Conclusion
The introduction of the extra tax refund money program offers a valuable opportunity for financial relief to eligible taxpayers. By understanding the payment dates and eligibility criteria, you can ensure that you take full advantage of this initiative. Stay informed and proactive to make the most of the additional support provided by this program.