Are they mailing the child tax credit
The Child Tax Credit (CTC) is a refundable tax credit provided to eligible families with dependent children under the age of 17. In the United States, the IRS (Internal Revenue Service) is responsible for administering the CTC program.
As of 2021, the American Rescue Plan Act (ARPA) expanded the CTC to provide advance payments to eligible families. These advance payments are designed to help families receive the credit more quickly and reduce the burden of paying taxes.
Here's how the advance payments work:
- Eligible families will receive advance payments of the CTC, which are monthly payments made directly to their bank accounts.
- The advance payments are based on the family's 2021 tax return information, which is used to determine their eligibility and the amount of the credit.
- The advance payments will be made from July 2021 to December 2021, with the first payment being made on July 15, 2021.
- The advance payments will be adjusted based on the family's income and the number of qualifying children.
To receive the advance payments, families must:
- File a 2020 tax return (or a 2021 tax return if they have already filed).
- Claim the CTC on their tax return.
- Provide their bank account information to the IRS.
The IRS will use the information from the family's tax return to determine their eligibility and the amount of the advance payment. The advance payments will be made directly to the family's bank account, and they will not need to take any additional action to receive the payments.
It's important to note that the advance payments are an estimate of the CTC, and the final amount of the credit may be different based on the family's actual income and the number of qualifying children.