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All the Information You Need to Know About Child Tax Credits and Stimulus Money

There is less than a month and a half to go until the tax-filing deadline. Helping clients file their taxes is a full-time job for tax experts all around the state. “With the IRS, things aren’t always as they seem. Sam Noshirvan, a tax associate of Timberline Tax Group, described them as “a big vessel.”

After FOX31 and Channel 2 received a few queries from viewers about stimulus checks and child tax credits, Noshirvan came to the rescue. ‘None of this should be subject to taxation,’ I argue. This is all part of the Cares Act, the various negotiations Congress had and passed into law,” Noshirvan added.

When it comes to taxes,  both government payments can be used as deductions or credits. In the event that you do not owe any taxes, you will receive a refund.

The child tax credit, for example, only went to half of American families in June of 2021. He explained that after you submit your taxes, the other half will be applied as a credit or a refund, depending on how much you owe.

The other half of the deduction would be available to them if they filed their tax return.” “This is practically a refund for most individuals,” Noshirvan remarked. In the same way, stimulus payments are. For example, if you only received one of your two stimulus payments, you would still be eligible for a credit on the other.

As a result, Noshirvan explained, if you were supposed to receive $2,400 over two instalments, the $1,200 you didn’t receive counts as credit. A certified public accountant or doing your taxes on your own? It’s important to include any missing stimulus payments, he said.

“The IRS should have it on there, but you always want to do your own due diligence,” said Noshirvan.

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Prior to preparing your taxes, here’s everything you need to know about child tax credits and stimulus checks

The Fourth Stimulus Check of 2022: How to Obtain This $1,400 Payout

Check the IRS website if you believe you are eligible for stimulus payments but have not received any.

From now until March 2022, you’ll receive a letter verifying the total amount of your third Economic Impact Payment and any additional payments you received for the year 2021.

In order to compute your Recovery Rebate Credit correctly, you’ll need the whole payment information from either your online account or your letter. Each spouse must check their own letter or log in to their own online account to receive their part of the total payment if they are married and filing jointly.

Individual tax returns must be submitted by April 15th. For an Oct. 15 deadline, you can ask for a six-month extension.

When in doubt, Noshirvan advised contacting a specialist for assistance.