GOVERNOR Ralph DLG Torres on Friday said the administration is waiting for a clear guidance from the U.S. Department of the Treasury regarding the monthly child tax credit payments.
He said he will exercise his executive authority so that qualifying families can receive their payments beginning this summer.
Payments are anticipated to be made until the remainder of this year.
The governor said once the CNMI Department of Finance receives clear guidance, then the monthly payments will be released.
He placed great emphasis on following federal guidelines.
The Department of Finance-Division of Revenue and Taxation on Tuesday announced that it is already working on a plan to implement the expanded child tax credit for 2021 pursuant to the American Rescue Plan.
DRT anticipates that up to half of the credits will be advanced to eligible families based on the 2020 tax returns, or if not available, the 2019 returns.
Families are encouraged to file their 2020 tax returns as soon as possible to avoid any delays.
The division will launch an online portal for taxpayers to update information, such as a change in the number of qualifying children, marital status, or significant change in income.
The portal will also allow taxpayers to submit or update their banking information for direct deposit payments.
Once the plan is finalized and approved, the division will issue further guidance.
The 2021 expanded child tax credit increases the amount of the credit, making it available for 17-year-old dependents, and possible for families to receive up to half of it, in advance, during the last half of this year.
Moreover, families can get the credit even if they have little or no income from a job, business or other source.
The credit is currently worth up to $2,000 per eligible child.
The new law increases it to as much as $3,000 per child for dependents ages 6 through 17, and $3,600 for dependents ages 5 and under.
The maximum credit is available to taxpayers with the following modified adjusted gross income:
• $75,000 or less for singles.
• $112,500 or less for heads of household.
• $150,000 or less for married couples filing a joint return and qualified widows and widowers.
Above these income thresholds, the extra amount above the original $2,000 credit — either $1,000 or $1,600 per child — is reduced by $50 for every $1,000 in modified adjusted gross income.
Before this year, the refundable portion was limited to $1,400 per child. However, this year, it is fully refundable.
“Our goal…is to make sure that we follow through the guidelines,” the governor reiterated.
Gov. Ralph DLG Torres, left, and Lt. Gov. Arnold I. Palacios wait for the start of a media conference in the governor’s conference room on May 13, 2021.
