The Treasury Department and the White House relaunched a revamped version of the
As part of the American Rescue Plan Act, the Biden administration expanded the amount of the Child Tax Credit to up to $3,600 per child through the end of last year and offered monthly advance payments of the tax credit. The administration has been trying to extend the tax credit this year as part of its Build Back Better Act, but that effort has run aground in the Senate, where Republicans and two moderate Democrats remain opposed.
The IRS has been sending out letters to families listing the amounts they received for the advance payments of the Child Tax Credit as well as Economic Impact Payments, but IRS chief taxpayer experience officer Ken Corbin told reporters Monday that the amounts reported on the letter may have been incorrect, especially if a family moved or if the check or direct deposit was undeliverable. The website should list the correct amount.
However, many families only received the first half of the amount they were entitled to last year and will be able to get the second half when they file their tax returns this year. In addition, some taxpayers who have qualifying children didn’t receive advance payments in 2021 because they welcomed a new baby in 2021, haven’t filed taxes before, or for other reasons. These taxpayers will get their full credit by filing their tax returns. On the other hand, many won’t be getting as high an amount as they’re used to receiving as part of their tax refund because about half the payments went out in advance last year.
“As tax filing season begins, Treasury’s priority is ensuring that eligible families are able to receive the full Child Tax Credit,” said Deputy Secretary of the Treasury Wally Adeyemo in a statement Monday. “This relief has helped families pay for essentials when they needed it most and by getting the second half, or the full amount, of the credit millions of children can continue to benefit.”
To help taxpayers with tax season, the website’s new features include a tool that directs taxpayers to the best free filing options based on answers to a few simple questions. Options for free filing include both virtual and in-person support in multiple languages. The site also offers information about the Child Tax Credit, eligibility, and how to get the credit.
