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Two tax credits you still have time to claim if you're a parent/guardian or military service member

Oct 05, 2022 10:37AM ● By Laura Durenberger
Photo: Kelly Sikkema 

Families, parents, guardians

By Kelly Hayes - Fox 9 News - October 5, 2022

Original article link. 

The enhanced Child Tax Credit (CTC) in 2021 provided qualifying U.S. families up to $3,600 per child, and for those who missed out on all or some of the payments, it’s not too late to file to receive the money. 

The CTC is a tax benefit that helps with the costs of raising children and was first enacted 25 years ago. It was significantly expanded in 2021 as part of President Joe Biden’s $1.9 trillion coronavirus relief package, increasing the payments to up to $3,600 annually for each child aged 5 or under and $3,000 for those who are ages 6 to 17.

Other temporary changes in 2021 included delivering 50% of the credit in advance monthly payments, beginning in July 2021, and the remaining 50% claimed on a 2021 tax return.

But those who didn’t file a return still have until Nov. 15, 2022, to file for the funds. A simplified tool — GetCTC.org — was created to make it easier for low-income families to get the CTC, as well as the third stimulus check. 

The CTC filing tool was developed by the nonprofit Code for America in collaboration with the White House and the U.S. Department of Treasury.

The expansion of the CTC helped reduce childhood poverty from 9.7% in 2020 to 5.2% in 2021, as measured by the U.S. Census Bureau’s Supplemental Poverty Measure. It was the lowest since the new measure was implemented in 2009.

Child tax credit payments begin: What you need to know

The Internal Revenue Service will begin to issue payments to parents under President Joe Biden's expansion of the child care tax credit issued to all Americans with minor children. The payments, which begin July 15, are expected to include at least 39 million parents and 65 million children. The program was approved by Congress as part of the most recent stimulus package related to the COVID-19 pandemic.

How to apply for Child Tax Credit 2022

For those who usually don’t file taxes, individuals can use the GetCTC.org filing tool to claim their CTC and any missing amount of money from the third stimulus payment last year. 

The form takes about 15 minutes to complete and filers don’t need any tax documents, according to Code for America.

Families who received advance monthly payments in 2021 can file a tax return to get the rest of their payments. Generally, this is $1,800 per younger child and $1,500 per older child, the nonprofit explains. 

Those who did not receive monthly payments in 2021 can file a tax return to get their total CTC payments — which generally add up to $3,600 per younger child and $3,000 per older child.

"Whether or not you received monthly CTC payments last year, and whether or not you filed taxes in the last few years or at all, filing a tax return this year is the right next step to get your CTC payments," Code for America says on its website.

There are currently no more monthly payments of the CTC during 2022, and those who file will receive the remaining amount in one payment.

Why didn’t I get Child Tax Credit monthly payments in 2022?

Monthly payments of the CTC started in July 2021 after Congress passed the sweeping coronavirus relief package, which made significant expansions to the credit. 

However, this only applied to 2021. 

While the CTC expansion was not renewed for 2022, families can still receive the second half of their payment in one lump sum by filing their 2021 tax return, Code for America explains.

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Military Service Members 

From the MN Department of Revenue - October 5, 2022

Original article link. 

The Minnesota Department of Revenue reminds the state’s military service members to take advantage of a refundable military tax credit before it expires. The 2018 Credit for Military Service in a Combat Zone will expire October 15, 2022, for qualifying service members.

More than 2,800 service members were eligible for the 2018 Form M99, Credit for Service in a Military Combat Zone, but about 1,400 service members still have not claimed it.

The credit is $120 per month or partial month served.

“With around half of eligible military service members still needing to claim this 2018 credit, we want to do everything we can to get the word out and make sure they’re aware of this tax benefit that is available to them,” said Revenue Deputy Commissioner Lee Ho. “This is money they earned for their service to our state and country.”

To qualify for the credit, service members must have:

  • Been a Minnesota resident during the time of service
  • Served in a combat zone or qualified hazardous duty area during 2018
  • Received combat pay that is exempt from federal and Minnesota income tax

The IRS has online information about combat zone locations approved for tax benefits.

How do military service members claim this credit?

To claim the credit electronically:

  • Go to www.revenue.state.mn.us and enter M99 into the Search box. Complete the online form to apply for the credit.
    • For active-duty members: Upload a Leave and Earnings Statement for each month of qualifying service must be uploaded
    • For National Guard, reservists, and retired or discharged active-duty members: Upload Form DD-214 for each period of qualifying service

To claim the credit by mail:

The department sent letters to more than 1,400 service members on how they may qualify for and claim the credit. Service members have already claimed more than $960,700 in refunds for the 2018 credit, with an average refund of $611. Tax credits for service in a combat zone are also available for 2019, 2020, and 2021.

The 2022 Form M99, will be available to file starting January 2023. 

Check out and share the department’s video explaining who qualifies and how to claim the Credit for Military Service in a Combat Zone. For more information, visit the department’s Military Service Members webpage.

You can also sign up for email updates by entering your email address and selecting “Military Information” under Individuals.

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