One of the expanded benefits in the current tax year provided as part of federal COVID-19 relief is an expanded Child Tax Credit, which became fully refundable and was valued up to $3,600 per qualifying child.
Brett Nikkel with Van Maanen, Siestra, Meyer & Nikkel says many families received half of their eligible credit in the form of direct payments from the IRS. The total credit was up to $3,600 per child 0-6 and $3,000 from 6-17 in households making less than $150,000 for married filers or $75,000 for single filers.
Nikkel says it’s key to track those coming into tax season — those who were eligible for the credit can have the remaining amount from 2020. Those who did not receive a payment could have full deductions, while the difference will remain to benefit taxpayers for households that were paid any amount.
Nikkel says to have documentation for any payments received to make sure the correct amount is used for tax time.