Tax Season 2021
Child Tax Credit 2021
The Internal Revenue Service has started sending letters to more than 36 million American families who, based on tax returns filed with the agency, may be eligible to receive monthly Child Tax Credit payments starting in July. It was authorized by the American Rescue Plan Act, enacted in March. The letters are going to families who may be eligible based on information they included ineither their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to registerfor an Economic Impact Payment. To find out more, read this helpful guide created by Legal Aid.
Here is what a family can get depending on the age of their child(ren) and their household income:
- For each qualifying children age 5 or younger, families will receive $300. That is determined by dividing $3,600 in half, which is $1,800. Six monthly payments of $300 will provide you with $1,800.
- For each qualifying children ages 6 to 17, families will receive $250. That is determined by dividing $3,000 in half, which is $1,500. Six monthly payments of $250 will provide you with $1,500.
The child tax credit payments will not count towards public benefits eligibility or amounts.
Common Tax Issues
Looking for your refund:
You must contact the IRS at 800-829-1040 or check online
Confused about a tax issue and cannot get an answer?
Contact your Taxpayer Advocate. The Taxpayer Advocate Service (TAS) is your voice at the IRS. Their job is to ensure that every taxpayer is treated fairly, and that you know and understand your rights. TAS can help if you can’t resolve your problem with the IRS and:
- Your problem is causing financial difficulties for you, your family, or your business.
- You face (or your business is facing) an immediate threat of adverse action.
- You’ve tried repeatedly to contact the IRS but no one has responded to you, or the IRS hasn’t responded by the date promised.
MD Taxpayer Advocate:
31 Hopkins Plaza, Room 1134, Baltimore, MD 21201
Need held with a tax dispute:
For income eligible taxpayers who need assistance in resolving a tax dispute with the IRS and cannot afford representation, or if they speak English as a second language and need help understanding their taxpayer rights and responsibilities, they may qualify for help from a Low Income Taxpayer Clinic (LITC) that provides free or low cost assistance.
Contact the local office for assistance.
Maryland Volunteer Lawyer Services 1-800-510-0050 or 410-547-6537
University of Baltimore School of Law 410-837-5706
The Earned Income Tax Credit (EITC): EITC helps low- to moderate-income workers and families get a tax break. If you qualify, you can use the credit to reduce the taxes you owe – and maybe increase your refund. Find out if you qualify.
What if I can’t pay my taxes?
If you cannot pay the full amount of taxes you owe, you should still file your return by the deadline and pay as much as you can to avoid penalties and interest. You also should contact the IRS to discuss your payment options at 800-829-1040. For more information, see The Collection Process and Tax Payment Options.