By Hughes Federal Credit Union

While you still have plenty of time to get all of your finances in check, it’s a good idea to get a headstart before this year’s deadline of April 18, 2022. Here’s what you should know.

Child Tax Credit Payments

In order to assist struggling families with financial difficulties brought on by the Covid-19 pandemic, the Internal Revenue Service (IRS) sent an advance on the child tax credit as monthly payments to qualifying families. Qualifying families began receiving up to 50% of their child tax credit from July to December 2021.

If you chose to receive the monthly child tax credit payments, you’ll need to report those funds in your 2021 taxes. Since the advance on the child tax credit was limited to 50%, some families can claim the remainder of the full tax credit on their tax returns for 2021. But if you chose to opt-out of the advance monthly payments, you’ll be able to claim the full child tax credit in your 2021 tax return.

In June 2021, the IRS mailed out Advance Child Tax Credit Outreach letters (Letters 6416 and 6416-A). These letters gave taxpayers an estimate of their tax credit for 2021. If you’re doing your taxes and find out you actually qualify for more than what you received, you may be able to claim what you’re entitled to on your tax return.

Third Stimulus Payments and the Recovery Rebate Tax Credit

If you did not receive the third stimulus or received partial payment in 2021, you could be eligible for the Recovery Rebate Credit. In order to claim any missing payments, you’ll need to file a 2021 tax return. You’ll also want to keep your eyes open for Letter 6475 which will show you the total amount you are entitled to and whether or not you should claim the recovery rebate credit on your 2021 tax returns. You can also log on to your online account at to see your third stimulus amount.

Charitable Donations

Individuals who don’t itemize deductions may be eligible for a deduction of up to $600 for married couples filing jointly and up to $300 for all other individuals for cash contributions made in 2021. If you do happen to claim your donations as itemized deductions, you can claim up to 100% of your adjusted gross income for your cash donations made to qualifying organizations but only for 2021. Normally, you’re allowed to deduct up to 60% of your adjusted gross income.

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