Author: Lisa Moore
The Child Tax Credit (CTC) is a tax incentive that assists families with the costs of child care. Though CTC exists for more than 20 years, it has greatly expanded last year. However, this year, you can receive up to $3,600 for each child under the age of six, and $3,000 for each child aged six to seventeen.
For single parents earning more than $75,000 and married couples earning more than $150,000, the credit is reduced. Almost every family in that income range gets the full amount. Even if you make very little or no money at all and don’t usually file taxes, you are eligible for the full CTC payments.
It also makes it easier for families with a low income to obtain a reasonable credit amount.
Are You Set to Collect Your Child Tax Credit?
The Child Tax Credit is available to the majority of families with children under the age of 18. (CTC). To be eligible for CTC:
- You must earn less than $75,000 as a single parent or $150,000 as a married couple to receive the full amount.
- You must have spent more than six months in the United States in 2021. (If not, you may qualify for a reduced CTC.)
- Your child, grandchild, sibling, niece/nephew, or great-niece/nephew must be the child you are claiming. Foster parents, stepparents, and half-relatives are also eligible.
- Your child must have been under the age of 18 by the end of 2021. (Born between January 1, 2004, and December 31, 2004.)
- Your child must not be independent financially, which means that he or she must be unable to cover more than half of their own living expenses.
- In 2021, your child must have lived with you for at least six months.
- Your child will require a Social Security Number (SSN). You, as the parent, will require an SSN or Individual Taxpayer Identification Number (ITIN).
- You must be the person that best suits to claim the child. In general, parents have the right to claim their children before non-parents; parents who spend more time with their children have an advantage over parents who spend less time with their children, etc.
How To Collect Your Child Tax Credit?
You must file a tax return to receive the Child Tax Credit (CTC). Regardless of whether you received CTC payments on a monthly basis last year, or have you filed taxes in the recent few years, filing a tax return, this year is the next logical step toward receiving your CTC benefits. In case you received advance monthly payments last year, then you can file a tax return to get the rest amount of your payments (basically, $1,800 for a younger child and $1,500 for an older child). But if you didn’t, you can file a tax return to get your total CTC payments (usually, $3,600 for a younger child and $3,000 for an older child).
Conclusion
Child Tax Credit is extended to all United States residents with one or more eligible children. Finally, the US families with a low income have a chance to get this vital financial assistance to encourage their children’s growth, health, and academic achievements.