Did you know that the American Rescue Plan designed to help families struggling with effects of the pandemic created a new tax credit payment for children?
Families who filed taxes in the past automatically received half of the Child Tax Credit payment via monthly payments from the government and will receive the other half when they file their 2021 taxes. But the credit is also available to families who weren’t eligible or didn’t file taxes in the past. Help spread the word! Payments can be crucial support for paying daily expenses like rent, utilities, clothing, car payments, childcare, or food, or to pay down debt or save for education expenses.
Details of the Child Tax Credit:
- The credit is worth up to $3600 per child.
- The credit may be claimed by families making up to $150,000, single heads of households making up to $112,500, and single filers making up to $75,000.
- Families can get this credit even if they don’t pay taxes.
- Families may be eligible now even if they weren’t in past years.
- Families may be eligible even if they have no work income or receive benefits such as Medicaid, SNAP, SSI, TANF, WIC, Section 8, SSDI, or Public Housing. The Child Tax Credit is not considered income and won’t affect benefits.
- The refund can help cover any old tax debts or child support owed and set families up to receive their full refund in future years.
- Children include sons, daughters, grandchildren, stepchildren or adopted children; younger siblings, step-siblings, half-siblings, or their descendants; or foster children.
- The child needs to be under 17 at the end of 2020.
- The child needs to have a valid Social Security Number.
- The child must have lived with the family for more than half of 2021.
- The child must not have provided over half of their own support for 2021.
To get help contact one of these free Volunteer Income Tax Assistance (VITA) tax preparation sites:
- Duluth: Community Action Duluth or 218-726-1665
- Range: Arrowhead Economic Opportunity Agency (AEOA) or 1-800-662-5711
- Northwest Wisconsin: NW WI Community Services Agency or 715-392-5127