Refunds are taking longer because the IRS has several things that they are trying to get done all at the same time. Remember the tax law has changed because of the CARES ACT and IRS has to create new forms and programming to accommodate those changes. They also, are working to prepare for the 3rd round of Stimulus payments all while working with a limited staff. Here is what the new American Rescue Plan will Do For Your Taxes and the Child Tax Credit.
Starting in tax year 2021, the Plan increases the Child Tax Credit from $2,000 to:
- $3,600 for each child under 6
- $3,000 for each child age 6–17
It also makes the credit fully refundable, meaning you’ll be eligible to get it even if you don’t owe taxes.
Starting in July, payments for the Credit will be sent in advance so you won’t have to wait to file your 2021 taxes to receive that amount.
You don’t have to do anything to get these payments. The IRS will likely determine eligibility based on your most recent tax filing.
Federal Earned Income Tax Credit
Starting in tax year 2021, the Federal Earned Income Tax Credit (EITC) has been expanded for workers without kids and nearly triples the maximum credit. Eligibility is also extended for a wider range of tax filers, including those who are over 65 or between the ages of 19–25.
When you file your return next year, we’ll check if you qualify and ensure you get the maximum credit amount you can.
The American Rescue Plan
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