Does your family qualify for the child tax credit? Income rules and more

Does your family qualify for the child tax credit? Income rules and more

Is your household expecting to get the first child tax credit payment on July 15? If so, we have good news: You don’t need to do anything to start receiving the monthly payments this summer. However, like anything tax-related, the child tax credit rules get complicated fast.

There are certain income requirements you need to meet — and your dependents have specific age requirements — to receive the max amount of up to $300 a month per kid (that’s up to $3,600 per kid total over the course of this year and next). And, yes, that includes babies born in 2021. Also, because the monthly payments are optional, eligible recipients can choose to receive the entire lump sum when they file taxes next year.

The White House’s proposed American Families Plan could extend the new child tax credit in the future. We’ll keep you posted. In the meantime, did you know you could claim up to $16,000 in child care expenses next year? Here’s what’s happening with a potential fourth stimulus check, what to do if you haven’t received your third stimulus checkwhen it could come and how to track it. This story was updated recently.

 $3,600 total per kid, or $300 per month, for children under age 6

If your dependents are below the age of 6, you can claim up to $3,600 per child as long as you meet the income requirements, which are listed below. That’s $1,600 more than the $2,000 that parents were able to claim on their 2020 tax returns.

This includes newborns, even if they’re born later in 2021. The parent filing will be able to update the IRS portal with their new dependent information to begin receiving the advance payments this year, said Garrett Watson, a senior policy analyst at Tax Foundation. Otherwise, parents can file a claim on their 2021 tax returns next year.

$3,000 each, or $250 per month, for children between ages 6 and 17

If you have dependents who are age 6 or older, you’ll qualify for up to $3,000 per kid over the next year, assuming you meet the income requirements. (Refer to the chart above.) This includes your dependents who are 17 years old — originally, parents could only claim up to $2,000 for each dependent age 16 and younger.

You can also get money for your older kids, although it’s not nearly as much. You can claim up to $500 for an 18-year-old, as well as for full-time college students ages 19 to 24…Read more>>

Source:-cnet

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