This summer, millions of eligible New Jersey families will receive relief in the form of IRS payments. Unlike the recent New Jersey tax credits that are coming out now, these come from the federal government.
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This is part of the 2021 child tax credit. The president has developed this with the US bailout which includes the “enhanced child tax credit”.
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While this is good news for families who work hard to make ends meet and need the cash, it is a bit complicated, so let’s break it down.
What is the enhanced child tax credit?
The original child tax credit was an annual benefit of $ 2,000 per year, which was factored in when you filed your taxes. The enhanced child tax credit increases this benefit to $ 3,600 per child. Plus, if your family is eligible, you can receive monthly prepayments from July to December 2021. In fact, the first installment of $ 250 to $ 300 in prepayments begins on July 15.
Am I eligible for the 2021 child tax credit?
According to the White House, to make the most of:
- Families must earn less than $ 150,000 a year and file taxes as a couple.
- A parent reporting as “head of household” must earn less than $ 112,500.
- A single parent deposit must be less than $ 75,000.
How are the 2021 child tax credit payments made?
If you or your family qualify for the maximum amount, you will receive up to $ 300 per child aged 6 and under and $ 250 per child aged 6 to 17. Payments will reach you every month from July to December.
How to claim the payment of child tax 2021?
If you filed a tax return in 2019 or 2020 and received a previous stimulus check, the monthly payments should come automatically.