New Income Help for Families with ChildrenPosted on: May 27, 2021
The information provided on this post does not, and is not intended to, represent legal advice. All information available on this site is for general informational purposes only. If you need legal help, you should contact a lawyer. You may be eligible for our free legal services and can apply by calling our Covid Legal Hotline at 1-844-244-7871 or applying online here.A new federal act has increased the amount of the Child Tax Credit and will provide new income for families with children. Eligible parents can now receive up to* 50% of their child tax credit spread out in six payments from July to December. The other 50% will be paid as a refund when the 2021 return is filed. No application is needed, and there are no agencies to deal with if all of your children:
- are listed on an income tax return you filed for the year 2019 or 2020 or
- if you got IRS stimulus payments for all of the children.
- $3,000 per qualifying child between the ages of 6 and 17
- $3,600 per qualifying child under age 6
- Have a child who is 17 or younger at the end of 2021
- Be responsible for at least half of the financial support of the child and they must live with you for at least half of the year.
- Divorced or separated parents that the child does not usually live with can only get the funds if the domiciliary parent agrees and signs the IRS Form 8832. That other parent then loses eligibility for the funds.
Can my advanced payments be garnished if I owe money to a creditor?Yes. The advance payments can be garnished by private creditors.
Will my advanced Child Tax Credit payments be reduced if I owe taxes from previous years?
No. The six advance Child Tax Credit payments will not be reduced for overdue taxes from previous years or other federal or state debts that you owe. However, if you receive a refund when you file your 2021 tax return, any remaining Child Tax Credit amounts included in your refund may be used to pay back tax debts or other federal or state debts you owe.
If your tax return is rejected electronically because your Social Security Number of your child's Social Security Number has already been used on another return, you should file a paper return and be prepared to appeal the rejection of that paper filing. You will have 60 days to appeal once you receive the notice that your return has been rejected. You will than have the opportunity to show that you were qualified to recieve the credits and did not recieve them. For example, if a relative is claiming your child on their return, you will have to show that your child live with you and not the person claiming them on their return.
If it is a case of ID theft, you will need to submit an IRS ID Theft Affidavit as well. The IRS will not send the advance Child Tax Credit payments to you until your identity theft issue has been resolved.
Protect your information and avoid tax scams related to the Child Tax Credit!
Be on the lookout for scammers who try to use the Child Tax Credit payments as a way to steal your personal information and money. The IRS will not contact you by email, text, or social media to request your personal or financial information. Also, watch out for emails with attachments or links claiming to have special information about advance Child Tax Credit payments or your refund. If you receive a suspicious IRS-related email, you can check out this website for more information: Report Phishing and Online Scams.
*Please note, our services are only available for residents of the following parishes: Ascension, Assumption, East Baton Rouge Parish, East Feliciana Parish, Iberville, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, Pointe Coupee, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Tammany, Tangipahoa, Terrebonne, Washington, West Baton Rouge, West Feliciana