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Child Tax Credit: What is CHILDCTC?

This tax credit, which is worth up to $3,600 for each child under the age of six and $3,000 for each child between the ages of six and seventeen, helps offset the expenses associated with raising children.

Half of your credit can be obtained through regular payments in 2021, and the other half can be obtained through filing a tax return in 2022. Even if you don’t typically file taxes and don’t have recent income, you are still eligible for the tax credit.

According to recent reports, raising a child will cost more than $200,000 over the course of the child’s lifetime. You may receive money back from the Child Tax Credit (CTC) at tax time to assist with those expenses.

If you owe taxes, the CTC may be able to lower your tax obligation. You receive the excess money back in your tax refund if your income is less than approximately $75,000 ($150,000 for married couples and $112,500 for heads of households) and your credit is greater than the taxes you owe. You will receive the full CTC as a tax refund if you do not owe any taxes.

How much can I get with the CTC?

The CTC is worth up to $3,600 per child under the age of six and $3,000 for each child between the ages of six and seventeen, depending on your household size and income.

When you earn $75,000 ($150,000 for married couples and $112,500 for head of households), CTC amounts begin to phase out. A $1,000 increase in income over the phase-out level lowers your CTC by $50.

You receive the excess funds back in your tax refund if you don’t owe taxes or if your credit is greater than the taxes you owe.

To qualify for the CTC, you must meet these three requirements:

  • You don’t need to be earning money.
  • A “qualifying child” is a child who has been claimed for the CTC.
  • You and your spouse must both possess a social security number (SSN) or an individual taxpayer identification number (ITIN).

The following requirements must be met in order for a child to be considered a “qualifying child” for the CTC:

  • Relationship: The child must be your son, daughter, grandchild, stepchild, adopted child, younger sibling, step-sibling, half-sibling, or a descendent of those individuals; or a foster child placed with you by a government agency.
  • Age: On December 31, 2021, the child must be 17 years old or younger.
  • Residency: The child must spend more than half the year living with you in the United States. The period of time spent cohabiting need not be consecutive. For non-custodial parents who have been given permission by the custodial parent to claim the child as a dependent, there is an exception.
  • Taxpayer Identification Number: Children who are eligible for the CTC must have a valid Social Security number (SSN). Compared to previous years, when kids could have either an SSN or an ITIN, this is a change.
  • Dependency: For tax filing purposes, the child must be regarded as a dependent.