American Parents May Still Receive More Child Tax Credit Payments This Year; Here's What You'll Need To Do!

Parents who were eligible for monthly child tax credit payments last year may expect greater lump sum benefits when they file their taxes on April 18.

The American Rescue Plan, which was adopted by Congress, temporarily increased the credit limit until 2021. Beginning in July of last year, millions of parents began receiving monthly checks of $300 for each kid under the age of five and $250 for each child aged six to seventeen.

Parents Are Unaware They May Still Have Child Tax Credit Payment To Claim

When those parents file their taxes this year, they will receive the second half of the child tax credit, totaling $3,600 for children under the age of five and $3,000 for those aged six to seventeen. When asked if they were aware that any percentage of the credit they hadn't received via monthly payments may be earned at tax time, 66 percent of parents replied yes and 34% said no in a recent poll.

In February, the Bipartisan Policy Center and Morning Consult polled 1,509 parents or guardians of children under the age of 18. According to Andrew Carothers, a research analyst at the Bipartisan Policy Center, the answers to that question were very constant across gender, age, ethnicity, and wealth.

Those who were newly eligible for the child tax credit as a result of Congress's temporary modifications last year are particularly prone to missing out. Minimum wages and income phase-in criteria were removed as part of the legislation. According to the research, 28% of respondents believed the adjustments were not effectively conveyed.

The Internal Revenue Service (IRS) has sought to improve awareness among persons who may need to submit tax returns to get the money they may be entitled to. Those who may have missed out on the $1,400 stimulus checks last year will need to file tax returns to collect the funds, according to CNBC.

The third stimulus payment is worth up to $1,400. Although the amounts were approximated using their most recent federal tax return, the majority of the stimulus money was immediately placed into people's accounts. You may be eligible for additional money in 2021 if your income or family size has changed. If you didn't get the payment or are owed extra money, you still have time to seek a tax credit before the deadline next week.

You still have time to file an extension request before tax day. This can be done online or by mail. Experts advise that you preserve documentation that you completed the task on time. Because the IRS is swamped with paperwork, it's a good idea to have this documented. While the extension offers you extra time to file, you still have until April 18 to pay your estimated taxes or face a penalty, as per GMA.

Will Child Tax Credit Payments Affect Tax Refund?

Advance payments of the child tax credit were distributed to 61 million eligible beneficiaries in 2021 as part of the American Rescue Plan. Even though this was a pleasant surprise for many families, taxpayers are concerned about the impact of these payments on their returns.

According to a recent GOBankingRates poll of 1,000 Americans, 38% of child tax credit users believe they would owe money or receive a smaller return. This mentality, according to GOBankingRates chief content data researcher Andrew Murray, stems from the belief that the extra money is too good to be true. In response to the survey's findings, Murray commented, "You might put this under the passionately held cliché "there is no such thing as a free lunch."

As stated in GOBankingRates tax survey, 34% of child tax credit beneficiaries had no idea how the benefit would influence their taxes, to assist both groups, GOBankingRates consulted with tax professionals to learn what to expect when filing this year.