10.2 C
Wednesday, December 1, 2021

News Of The Child Tax Credit: A Letter From The IRS Might Bring Good News

While we have been focused on the stimulus check, it appears that a lot of us have forgotten about the child tax credit. But the first installment is just a month away. The first check is expected to be sent on July 15. The checks are to continue till December 2021.

Getting a letter at this stage from the IRS could be a reason to celebrate. The IRS has been sending out letters notifying people of the amount they will get under the CTC.

Awaiting A Letter Announcing The Child Tax Credit

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Around 36 million such letters are being sent across the country. 92.2% of families having one or more children will be eligible for the child tax credit. It will benefit around 65.6 million children. The payment has been divided into two slabs. Children below six will get a total of $3,600 while kids between 6 and below 17 will get $3,000.

The letter indicates that the IRS believes that you have qualified for the child tax credit based on the last tax returns that you have filed, or from details in your non-filers tool. This letter should be retained for future reference as this is an official letter.

A 2nd Letter Regarding The Child Tax Credit

A second letter that you receive will confirm your eligibility for the CTC payment. The payments will come in two parts. One-half of it will be sent as monthly installments from July 15 to December 15, 2021.

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The rest of the amount will be in the form of a tax refund against the 2021 tax returns to be filed in 2022.

Both the letters are as important as Notice 1444-C received after you receive the third stimulus check. These letters can be used for future reference if you do not receive your child tax credit installments or receive a lesser amount.

Not getting a letter doesn’t mean that you haven’t qualified for the amount. You could miss out on the letter sent by the IRS if you have insufficient information about the eligibility of your family. They might even not have your latest mailing address.  

You might need to update the information to qualify for the payment.

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