However, if you had a new baby or gained a dependent any time in 2021 that the IRS didn't know about, you could get even more money back. If you chose to opt out of those checks last year, you'll get the full amount owed to you. Six child tax credit payments went out in 2021, and the rest of the money will come with your tax refund this year after you file your taxes. How are 2021 tax returns related to child tax credit money?
You'll either need to file a 2020 tax return if you haven't yet, or amend your 2020 tax return if it's already been processed.Īt the end of 2021, the IRS still had some 6 million unprocessed tax returns to go through and advises you not to file a second return if your 2020 tax return still hasn't been processed yet.īetween the child tax credit and child care expenses, you could get a lot of money back this year. Keep an eye out for Letter 6475 from the IRS as it will have all the details you need about last year's stimulus check when you file.Īs for the first two stimulus checks, if you didn't receive either check or received less than you qualified for, you could still be eligible to claim the money through a recovery rebate credit. You could get up to $1,400 for your dependent - that includes a new baby born or adopted.
If the IRS owes you money for the third stimulus check due to a new qualifying dependent you gained in 2021, you can file for that payment through a recovery rebate credit when you file your taxes. How are 2021 tax returns related to stimulus payments? For more on penalties or to work out a payment plan with the IRS, check out its web page. If your return is filed more than 60 days after the due date, the minimum late-filing penalty is either $435 or 100% of the unpaid tax (whichever is less).įor individual taxpayers, penalties and interest will stop accruing only when your balance is paid in full. The IRS can also issue a late-filing penalty of 5% of the amount due for every month or partial month your tax return is late. The late-payment penalty is usually 0.5% per month of the outstanding tax not paid by the filing deadline, maxing out at 25%. Otherwise, you will have accrued interest on what you owe, which you'll eventually have to pay - plus possible penalties - on top of your income taxes. According to the IRS, you need to estimate and pay at least 90% of your tax liability by the deadline to avoid late fees. Extending your filing deadline doesn't delay when you have to pay taxes that you may owe.
Will an extension postpone me from paying money to the IRS?
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