Tax day is one week away.
This year, the government is giving Americans a few extra days to get their taxes done. With the traditional April 15 deadline falling on Good Friday, Americans have until April 18 to file, while those in Massachusetts and Maine have until April 19.
There are also a few items to remember this year, including the child tax credit, the final stimulus payment and steps to take if an extension is needed.
Cash in on child tax credit
For parents, the child tax credit is a big deal. Under the American Rescue Plan Act of 2021, eligible taxpayers who received advance payments of up to half the 2021 Child Tax Credit can claim the rest once they file their taxes this month.
Families with children under 6 years old are eligible for $3,600 per child and $3,000 per child ages 6-17, and you qualify for this if your salary is below $75,000 as a single filer and $150,000 for joint returns.
Those who are eligible should have received a piece of paper from the IRS with the amount that they already received and the amount you can claim.
3rd economic impact payment
The third stimulus payment is worth up to $1,400. The majority of this stimulus money was automatically deposited in people’s accounts, but the amounts were calculated based on their most recent federal tax return.
If your income or the size of your family changed in 2021, you may be eligible for more money. If you didn’t get the payment or are due more money, you can claim a tax credit on your return by next week’s deadline.
For procrastinators out there, you can still file an extension request by tax day. You can do this online or by mail. Experts recommend making sure to keep proof that you did this on time. The IRS has been backlogged with paperwork, so it’s smart to have this documented.
While the extension gives you more time to file, you still need to pay your estimated taxes by April 18, or you will have to pay a penalty.