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Extra Tax Refund Money Under This Program is Coming: Payment Dates, Who is Eligible?

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 Extra Tax Refund Money Under Child Tax Credit: The American Rescue Plan offers the highest Child Tax Credit ever, providing up to $2,000 per child, which is partially refundable as the Additional Child Tax Credit (ACTC).

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ACTC Overview: The ACTC is a refundable tax credit for families who owe less tax than their eligible Child Tax Credit amount. It helps families lower their overall tax obligations and potentially receive extra refund money.

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Refundable Amounts: For 2023, the ACTC can be refundable up to $1,600 per eligible child, increasing to $1,700 in 2024. Filers must complete Schedule 8812 to claim this refund.

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Eligibility Criteria: To qualify, the child must be under 17 at the end of the tax year and can be a relative such as a niece, nephew, grandchild, sibling, stepchild, or own child. The child must be claimed as a dependent and must live with the filer for most of the year. Additionally, the child must be a U.S. citizen, resident alien, or national, and their self-support should not exceed 50% of their expenses.

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Direct Deposit and Payment Dates: The IRS expects most ACTC refunds to be available in bank accounts or on debit cards by February 27, for those who select direct deposit and have no other tax return issues. Some early deposits may occur.

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Reason for Delay: The IRS cannot provide earned income tax credit (EITC) and ACTC refunds before mid-February due to statutory requirements to prevent fraudulent returns.

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Check Refund Status: By February 17, the "Where’s My Refund?" tool on the IRS website will be updated with the anticipated deposit dates for most early filers of EITC/ACTC refunds.