How The Child Tax Credit Can Save You Thousands Story

The child tax credit is a tax break available to parents in the United States. It’s a credit rather than a deduction because it reduces taxes paid, not taxable income.

The child tax credit can be worth up to $3600 per child for 2021 taxes, a significant amount of money you can receive every year to increase your family’s net worth.

How Much Can I Get for the Child Tax Credit? If you are filing your 2021 taxes now, you are in luck. President Biden’s American Rescue Plan raised the credit amount for 2021. The government boosted the Child Tax Credit from $2,000 to $3,600 for qualifying children under the age of six and $3,000 for other qualifying children under 18.

Previously, only children 16 and younger qualified for the child tax credit. The credit is also fully refundable, so eligible households can receive the full credit benefit, even if no taxes are outstanding.

In 2022, the child tax credit will revert to $2,000 for each dependent child aged 17 or younger. This amount may change depending on what Congress decides in the coming weeks.

If they do not pass an extension of the enhanced benefit or the monthly payments, the credit will return to its original amount of $2000.

Do I Qualify for the Child Tax Credit?

To qualify for the child tax credit: – You must have a child under the age of 18 – The child must be a US citizen or resident alien – You must also provide proof of your child’s identity – The child must have a social security number

– In addition, your child must live with you for more than half of the year – You or your spouse must live in the United States for at least half of the year

You can claim the credit for your child, adopted child, stepchild, or foster child. You can also claim the credit for a sibling as long as they are dependent on you for at least half of their expenses.

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