This year, millions of parents and those who have no children may collect up to $7,000 in tax credits.
Expanded Child Tax Credit
Thousands of families were no longer getting direct payments as a result of the expiration of the increased child tax credit at the end of last year. In spite of this, many taxpayers may get a sizable payment from the IRS in March. Parents who are eligible for additional child tax credits will still be able to do so.
More than $3,600 was made available to families with children under the age of 5, however, only half of the credit was paid out in monthly installments. As a result, up to an extra $1,800 will be available to certain families as a tax refund.
The IRS should have sent a letter 6149 to parents who were receiving monthly payments, informing them of how much of their child tax credit they had previously received. It’s possible that people other than parents may notice an increase in their refund this tax season.
Confirmation of IRS
Newly qualified for the Earned Income Tax Benefit (EITC), an income tax credit that is aimed largely at lower and middle-income Americans. With this year’s EITC eligibility expansion by the IRS, young individuals without children are now able to receive a tax cut of up to almost $7,000.
According to IRS regulations, refunds for the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) cannot be issued until the middle of February. Taxpayers who choose direct deposit and have no other concerns with their returns may anticipate their refunds to arrive by March 1, according to the IRS.