>> YOU ARE WATCHING WBCV 5:00 BEN: BEN: GENERALLY MOST PEOPLE LIKE GETTING MAIL FROM THE I.RS IT IS USUALLY BAD NEWS. A LOT OF YOU HAVE FOUND A LETTER LIKE THIS ONE. IT INCLUDES INFORMATION ABOUT PAYMENTS THE IRS COULD BE SENDING YOUR WAY STARTING NEXT MONTH. DEMOCRATS IN CONGRESS PASSED THE MOST RECENT STIMULUS IN MARCH. THE 1.9 TRILLION DOLLAR RESCUE PLAN. IT INCLUDED AN EXPANSION OF THE CHILD TAX CREDIT FORHIS TYEAR. JUST 2021. IT GOES FROM 2000 PER KID TO 3000 PER KID BETWEEN AGES XSI AND 17. IT IS 3600 BUCKS FOR EACH KID UNDER THE EAG OF SIX. THE BILL CALLS FOR THE IRS TO SEND YOU MONTHLY ADVCEAN PAYMENTS. STARTING IN JULY AND RUNNING THROUGH THE END OF THE YEAR. IF YOU ARE OWED 3000, YOU WILL GET 250 BUCKS A MONTH FOR SIX MONTHS AND COLLECT THE OERTH 1500 WHEN YOU FILE TAXES. IT IS NOT A SCAM. IT IS SIMP ALY NOTICE MORE INFORMATION IS GOING TO BE COMING THE NEXT COUPLE OF WEEKS INCLUDING A CHANCE TO OPT OUT OF THE MONTHLY PAYMENTS IF YOU WOULD RATHER COLLECT THE ENTIRE AMOUNT WHEN YOU FILE YOUR TAXES NEXT SPRING. TO QUALIFY FORHE T PAYMENTS, YOU MUST HAVE FILED A 2020 2019 TAX RETURN BECAUSE THEY WILL USE THAT TO ESTIMATE THE NUMBERS AND THE CREDIT WILL BE REDUCED FOR TAXPAYERS WHO MAKE MEOR TNHA $75,000 A YEAR AS A SINGLE FILER OR MORE THAN A HUNDRED 50,000 AS A COUPLE. CONGRESS ALSO MADE THE CHILD TAX CREDIT FULLY REFUNDABLE. YOU CAN COLLECT IT EVEN
Explaining recent IRS letters about the Child Tax Credit
Updated: 10:46 AM EDT Jun 9, 2021
Many families will soon begin receiving monthly payments from the IRS as part of the credit that was included in the American Rescue Plan.Some have already received a rather confusing letter about the program. Here's what parents should understand about the program:When Democrats in Congress passed the most recent stimulus package in March, the $1.9 trillion American Rescue Plan, it included an expansion of the Child Tax Credit this year. Instead of $2,000, the credit grows to $3,000 per child for those age 6 through 17 and $3,600 for children under age 6. The law also calls for the IRS to send families monthly advance payments for half the amount you're owed starting in July and running through the end of the year.So if you're owed $3,000, you'll get $250 a month for 6 months and will collect the other $1,500 when you file taxes.In order to qualify, the family must have filed either a 2019 or 2020 tax return. Qualification for the payments is based on the reported income and begins to phase out starting at $75,000 for single filers or $150,000 for a couple. Congress also made the child tax credit this year fully refundable, which means you can collect it even if you don't owe any money in taxes.
Many families will soon begin receiving monthly payments from the IRS as part of the credit that was included in the American Rescue Plan.
Some have already received a rather confusing letter about the program. Here's what parents should understand about the program:
When Democrats in Congress passed the most recent stimulus package in March, the $1.9 trillion American Rescue Plan, it included an expansion of the Child Tax Credit this year. Instead of $2,000, the credit grows to $3,000 per child for those age 6 through 17 and $3,600 for children under age 6.
The law also calls for the IRS to send families monthly advance payments for half the amount you're owed starting in July and running through the end of the year.
So if you're owed $3,000, you'll get $250 a month for 6 months and will collect the other $1,500 when you file taxes.
In order to qualify, the family must have filed either a 2019 or 2020 tax return. Qualification for the payments is based on the reported income and begins to phase out starting at $75,000 for single filers or $150,000 for a couple.
Congress also made the child tax credit this year fully refundable, which means you can collect it even if you don't owe any money in taxes.
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