SURPRISE, new child tax credit payments are on their way to eligible families who need help.
New legislation passed in New Mexico last month will see bonus checks worth $175 per child sent to eligible families.
The bill, which will provide a total of $380 million in tax relief, includes an increase in the child tax credit.
The tax credit depends on the level of income, however, it has not yet been clarified who will be eligible.
During this time, the IRS said taxpayers who request direct deposit on their returns for the year should receive their money in three weeks or less.
The amount of advance child tax credit payments you received in 2021 is based on the IRS estimate of the CTC amount granted to you for the 2021 tax year.
The law requires that this estimate be based on two main sources of information.
The first is your 2020 tax year return. If this return is not available, the IRS will refer to your 2019 return.
Second, any updated information you provide to the IRS in 2021, including any changes to the number of eligible children, changes to your income, and changes to your filing status.
The agency understands that family and living situations change throughout any given year.
Read our Child Tax Credit live blog for the latest news and updates…
This is why you may receive a total amount of deposits which may be greater than the amount of CTC granted to you.
According to a Center on Budget Priorities59 percent of families used child tax credit payments to help put food on the table.
52% of parents used it to pay for utilities and 45% used it to help pay the mortgage.
The IRS has stated that there are prerequisites to qualify for child tax credit advance payments.
Americans, according to their website, must have:
- You filed a 2019 or 2020 income tax return and claimed the child tax credit on the return or
- Give us your information in 2020 to receive the Economic Impact Payment with Non-Filers: Tool Enter payment information here or
- Give us your information in 2021 with the Non-filer tool: Submit your information and
- Lived in a primary residence in the United States for more than half the year (all 50 states and the District of Columbia) or filed a joint return with a spouse who has a primary residence in the United States for more than half the year and
- A qualifying child who is under the age of 18 at the end of 2021 and has a valid Social Security number and
- Income below certain income limits