The $1,400 stimulus payments and the $3,600 Child Tax Credit (CTC) were among the most impactful financial relief efforts rolled out by the U.S. government during the COVID-19 pandemic.
These measures targeted millions of American families to ease financial stress, especially those with dependent children.
But how do these payments work? Are they still available? Let’s dive in.
$3,600 CTC + $1,400 Stimulus Checks
The $1,400 Economic Impact Payments (EIPs) were a key part of the American Rescue Plan Act. These payments aimed to help families and individuals cope with the economic fallout of the pandemic.
Key Details:
- Amount: $1,400 per eligible individual, including dependents. A family of four could receive up to $5,600.
- Eligibility:
- Individuals with Adjusted Gross Income (AGI) up to $75,000.
- Heads of households with AGI up to $112,500.
- Married couples filing jointly with AGI up to $150,000.
- Phase-out Range: Payments reduced for higher incomes and stopped at $80,000 for individuals and $160,000 for couples.
What If You Missed the Payment?
You can still claim the stimulus payment as a Recovery Rebate Credit on your 2021 tax return. The IRS deadline for amending 2021 returns is April 15, 2025.
Child Tax Credit (CTC)
The enhanced CTC under the American Rescue Plan provided up to $3,600 per child under six and $3,000 for children aged six to 17. This temporary increase applied only for the 2021 tax year.
Key Points:
- Advance payments: Many families received monthly advance payments in 2021.
- Eligibility: Based on income thresholds similar to stimulus payments.
- Refundable portion: Families with no tax liability could still claim the credit.
Claiming a Missed CTC
If you missed out on the advance payments, you could claim the full amount on your 2021 tax return.
Ensure your information, including dependents, is accurate to receive the correct amount.
How to Claim Missed Payments
If you think you’re entitled to payments but didn’t receive them, follow these steps:
- Organize Your Documents:
- Gather your 2021 tax returns.
- Collect income forms like W-2s or 1099s.
- Have details of your dependents ready.
- Access IRS Portals:
- Use the Child Tax Credit Update Portal for CTC payment history.
- Visit Get My Payment to track stimulus payments.
- File or Amend Your Tax Return:
- File your 2021 tax return if you haven’t already.
- Use Form 1040-X for amendments.
- Contact the IRS:
- Seek help from the IRS or a tax professional if you face issues.
Misconceptions About 2024 Payments
There’s some confusion about December 2024 payments. Here’s the truth:
- The $1,400 payments were part of the 2021 stimulus, not an ongoing program.
- The enhanced $3,600 CTC was specific to 2021 and isn’t available in 2024.
Payment Process
The IRS processes CTC payments during the tax filing season, typically starting in January or February.
How Payments Work:
- Tax Filing: File your 2024 taxes by April 15, 2025, to claim CTC.
- Refundable Credit: If your credit exceeds taxes owed, you’ll receive a refund.
- Direct Deposit: E-filed returns with banking info result in faster payments.
By understanding the eligibility criteria and steps to claim these benefits, families can ensure they don’t miss out on crucial financial support.
