Secretary of the Treasury Janet L. Yellen addressed crowds at the White House Child Tax Credit and Earned Income Tax Credit Day of Action Tuesday, Feb. 8. After citing research indicating the vast benefits of the Earned Income Tax Credit and Child Tax Credit, Yellen urged Americans who did not receive the money — or received only a portion of the funds — to file taxes to receive the rest of the money.
In her address, she noted that many families did not receive any advance Child Tax Credit payments because a baby was born in 2021 and the family had never filed tax returns including the child before. Others didn’t receive money because they are residents of Puerto Rico who did not realize they needed to file taxes to receive the funds.
Yellen went on to say that the only way to disburse the funds to those who need them, right now, is for those who did not receive CTC or EITC payments to file their taxes in 2022.
“Filing taxes can be hard, and we’re talking about some of the hardest-to-reach people in this country, people to whom the government has far too often been blind,” Yellen said. “I can promise you that the U.S. Treasury will provide you with every resource we have to help you do the job.”
In 2021, the IRS disbursed monthly payments to 30 million families, including 26 million lower-income children receiving the credit for the first time, Yellen reported. As a result of the expanded CTC, 70% of caregivers said they were less stressed about making ends meet in 2021.
Teens & Taxes: I Received a Child Tax Credit for My College Student – Do They Need to File Taxes?
Child Tax Credit Portal: IRS Warns of Wrong Amounts — Here’s What You Should Do
For those who are still owed all or part of their CTC payments, the IRS offers free e-file and tax preparation services to those who qualify based on income under the IRS Free File program. For taxpayers with an adjusted gross income of $73,000 or less, the IRS Free File program could be one option to use to file taxes and claim their Earned Income Tax Credit or Child Tax Credit funds.
More from GOBankingRates: