Parents must claim $3,600 tax credit by April 15

Parents in the U.S. have a chance to claim a $3,600 tax credit, but time is running out. They must act before April 15 to avoid losing this money to the Treasury. This tax credit was part of the American Rescue Plan introduced by former President Joe Biden in 2021. The plan increased the child tax credit from $2,000 to $3,600 for children under 6 years old. However, many parents did not realize they could claim this credit and may have missed out. To be eligible for the 2021 child tax credit, children must have been under 18 at the end of that year and have a Social Security number. The taxpayer must be related to the child or be their legal guardian. Children must have lived with the taxpayer for more than half of the year and could not provide more than half of their own support. Taxpayers can still file for the expanded child tax credit if they meet the eligibility criteria for 2021. They need to use Form 1040-X for an amended return and include Schedule 8812. Finance experts emphasize that filing now could result in significant refunds. The IRS reports that there is about $1 billion in unclaimed refunds for 2021. If taxpayers do not file by April 15, this money will be sent back to the Treasury. Even those who did not owe taxes for 2021 could still receive a refund by filing now. Experts encourage parents to take action. Many families have benefited from this credit during the pandemic, and it can provide unexpected financial relief. If you believe you qualify but did not claim the credit, now is the time to check your eligibility and file your return.