Vice President Kamala Harris led the Biden administration's "Day of Action" on Feb. 8 to encourage Americans to sign up for the expanded Child Tax Credit (CTC), remarking that "working families deserve a break."
Harris was joined in person by Treasury Secretary Janet Yellen and White House American Rescue Plan Coordinator Gene Sperling, and stressed the importance of checking to see if Americans qualify for benefits. She added that those who do qualify must file their taxes with the Internal Revenue Service to receive the remainder of their CTC and Earned Income Tax Credit (EITC) this tax season.
"That is the only way to receive the second of what you're owed," Harris said. "So remember, you are owed more, but you still need to file your taxes."
Refinancing high-interest debt into a personal loan could help you lower your interest costs and keep more money in your bank account. Visit Credible to find your personalized interest rate without affecting your credit score.
Families must file taxes in 2022 to receive CTC
The White House noted in an official fact sheet on the Day of Action that families must file a tax return in 2022 in order to receive the full credit for the CTC payment. In fact, the document stated that families that didn't receive any advanced payments for a child in 2021 can also receive a $1,400 Economic Impact Payment for each child they did not receive the payment for last year.
The EITC increased this year’s child tax credit from $2,000 to $3,600 per child under the age of six. The credit is $3,000 for children between the ages of six and 17. While half of this credit was paid out in monthly advance payments through December 2021 for each qualifying child, the other half will be paid out with this year’s tax return.
Families that welcomed a new baby or child in 2021, or who haven't filed their taxes in recent years or opted out of advance monthly payments, could qualify for higher tax returns this year since this information would not have been counted for the payments given out in 2021.
The deadline to file taxes and also take advantage of CTC benefits in 2022 is April 18. If you're struggling to pay high-interest credit card debt, consolidating into a lower interest personal loan could make your monthly payments more manageable and help you get back on track. Visit Credible to compare multiple lenders at once and choose the one with the best interest rate for you.
Harris urges communities take action in encouraging Americans to file taxes
As the Biden administration seeks to spread awareness of the additional tax credits available this year, hundreds of non-profits, and organizations – including religious, veterans, youth and more – have taken actions to encourage their communities to file their taxes this season.
In her remarks, Harris asked state and local governments, as well various organizations to "spread the word" to help remind Americans about their potential benefits. The White House's fact sheet noted texting campaigns, frontline worker training, volunteer income tax assistance sites, online tax prep services and more as ways to "reach families across the country."
"Be it at Sunday dinner, at the barbershop, at work, at school and at home," she said. "And I believe, and I know our work will be worth it. Because every family we lift up, when we do that, we lift up our entire nation. And that's why the president and I will keep fighting to extend these measures for years to come."
Families can use a free tax filing service to see what refund they could receive amid increased tax credits, and they can also take out a personal loan while interest rates remain low to help alleviate high-interest debt. Contact Credible to speak to a loan expert and get all of your questions answered.
Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at email@example.com and your question might be answered by Credible in our Money Expert column.