Figuring out if your kids qualify for the expandedis now more crucial than ever. The first monthly check will come on July 15 to families who meet the . You can estimate what you might receive based on your dependent’s age, your income and other factors by using . For instance, you could get up to $3,600 total if your individual salary is less than $75,000 and you have one child younger than 6 years old. You can also get a check if you in 2021.
The IRS said that nearly 39 million households will get a child tax credit payment of some amount starting this summer. The advance payments will be consistent and arrive on or around the 15th of the month, contingent upon weekend and holiday schedules. Thebefore July 1 where you can and update your information.
The IRS will be focusing more on the child tax credit payment details in the next period. For now, here’s how theand what we know about a potential and . Also, here’s . This story has been updated recently.
Eligibility for those with children age 17 and younger
If you have dependents who are 17 years of age or younger, they can each count toward the new child tax credit. However, the amount they’re eligible for depends on their age. Kids between the ages of 6 and 17 will count for up to $3,000 each. Kids who are under the age of 6 can count for up to $3,600 each.
The prior child tax credit offers families $2,000 per kid age 16 and younger, so adding an additional $1,000 to $1,600 per kid can significantly help families financially. Plus, the new CTC adds 17-year-olds to the mix.
Partial payment for those with kids age 18 to 24
If you have 18-year-old dependents, they can qualify for up to $500 each toward the child tax credit amount you’ll receive. If you have a dependent between the age of 19 and 24 who is attending college full-time, they can also qualify for up to $500 each toward your total payment, per the new stimulus bill.
Babies born this year also qualify
If you’re expecting your baby to arrive before the end of 2021, the Tax Foundation. The IRS says both portals will open by July 1.. This includes children who are adopted, assuming they’re US citizens (more below). You’ll be able to use the IRS portal once it’s available to update your information to add your new family member or you can claim the tax credit when you file your 2021 tax return next year, according to Garrett Watson, a senior policy analyst at
Eligibility for children with disabilities
Children with disabilities can qualify for the child and dependent care credit separately from the child tax credit, Watson said. You may be able to claim this credit if you paid expenses for the care of a qualifying dependent to enable you to work, per the IRS. Watson says the child tax credit would apply similarly to children with disabilities.
Eligibility for parents with shared custody
“Double-dipping” benefits for the same child worked for the first two stimulus checks, where a loophole entitled unmarried parents who share custody to bothin a specific situation. That . In fact, overpayment could result in you being asked to return the money to the IRS.
Dependents must live with you at least six months out of the year
If you’re claiming the new child tax credit for your child, note that the child must live with you at least six months out of the year. There are exceptions to this rule, though, including temporary absences. According to the IRS, “A person is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances,” including illness, education, business, vacation and military service.
Also, a newborn child born later in 2021 is included in the exception and will be considered as living with you for the entire year. However, the IRS will be working off the 2020 tax return, which will not have children born in 2021 listed, according to Joanna Powell, certified financial planner and managing director at CBIZ, so remember to update your information in the portal.
Additional requirements for your dependents
If your child isn’t a US citizen and doesn’t have a Social Security number, there’s no way around this one: They don’t qualify. When you file your individual income tax return (Form 1040), you’re required to list your dependents and their Social Security numbers when you’re claiming them for the child tax credit.
This includes adopted children. An adopted child who isn’t a US citizen and has an ATIN or ITIN (adopted/individual taxpayer identification number) won’t qualify for the child tax credit, per the IRS. “The child must have an SSN to be a qualifying child eligible for the child tax credit.”
This is unlike the third stimulus check, wherecould receive a check and only one member of the household needed to have a Social Security number.
For more information, here’s, and .