CHARLOTTE, N.C. — It's been almost a week since North Carolina started accepting income tax returns and the IRS has been open for business since late January.
With many people just now starting to file, WCNC Charlotte's VERIFY team is answering all of your questions about income taxes, credits, extensions and more.
One of the most popular questions involves the expanded child tax credit. In 2021, Congress changed the credit because the COVID-19 pandemic created hardships for many families. The goal was to put more money directly in families' pockets during the year instead of just at tax time.
THE QUESTION
Can you claim the child tax credit if you didn’t work or have income in 2021?
OUR SOURCES
THE ANSWER:
Yes, you can claim the child tax credit if you didn’t work or have income in 2021. However, you need to make sure your tax return is filed correctly in order to do so.
WHAT WE FOUND:
The American Rescue Plan Act of 2021 temporarily expanded child tax credits for the year. The law increased the credit to as much as $3,000 per child and $3,600 for children under 6 years old.
The American Rescue Plan made the credit fully refundable for families who lived in the U.S. for more than six months during 2021. And half of the credit was allowed to be paid in advance through monthly payments to families.
According to the IRS, under the rules for 2021, people who qualify for a child tax credit can receive the full credit as a refund.
"It was a one-time change to the law just for 2021, but allowed people who say are on Social Security and taking care of a child to get some benefits," Bartlett said.
Bartlett said families with no earned income in 2021 can tax the full child tax credit as long as they meet the criteria. That means claiming the whole thing on your tax return. Remember, half of the credit was split up into monthly payments but the other half can be applied to your tax bill or your refund.
"The other half of the credit needs to be claimed on the 2021 tax return, so it’s imperative that people who maybe don’t usually have to file go in and file so they can get the second half of that child tax credit," Bartlett said.
He said it's important for people to file taxes, even if they are below the usual income thresholds, which range from $20,500 for head of household filers to below $12,500 for single filers.
"There are lots of reasons why people who are not required to file a return might want to file a return," Bartlett said. "Especially in 2021 because of the child tax credit and the enhanced income tax credit."
Contact Meghan Bragg at mbragg@wcnc.com and follow her on Facebook, Twitter and Instagram.
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