Increased Child Tax Credit for Tax Year 2021

Low- and moderate-income families will soon get monthly payments of $250 or $300 per month per child through an increase to the federal Child Tax Credit (tax year 2021 only). This includes grandparents of other relatives raising a child.

If you are a parent or caregiver, have already filed your 2019 or 2020 tax return and claimed your child or relative child you’re caring for, or provided the IRS with your non-filer information, there are no additional steps you need to make.

ELIGIBILITY

  • Parent or caregiver’s income must be no more than:
    • $150,000 for married taxpayers filing jointly, and qualifying widows or widowers
    • $112,500 for those filing as head of household
    • $75,000 for all others
  • The child must be a relative of the taxpayer
  • The child must reside with the taxpayer for more than six months in 2021 in the United States
  • The child must have a valid social security number

NOTE

  • Children age 0-6 will qualify for a $3,600 child tax credit, of which up to 50% will be paid in the amount of $300 per month starting in July 2021
  • Children age 6-17 will qualify for a $3,000 child tax credit, of which up to 50% will be paid in the amount of $250 per month starting in July 2021
  • Children who turn 18 years of age during 2021 will not qualify

Parent and caregiver’s can benefit from this credit even if they do not have enough income to owe taxes. They must provide their information to the IRS in order to receive the benefits, and can do so here: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool

You may check your eligibility here: https://www.benefits.gov/benefit/938#Eligibility_Checker

Additional information may be found here: https://www.whitehouse.gov/child-tax-credit/

More questions? Call our Free Senior Legal Advice Helpline at 1-844-481-0973.

 

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