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Child discount 2021: who qualifies as dependent?



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Do your children count towards the 2021 child discount?

Angela Lang / CNET

As a parent or guardian, you may have known that you had to meet a number of requirements qualify for the Child discount 2021 (CTC). But did you know that your children must also meet the qualification guidelines? As with the third stimulus checkThe fact that your family member is eligible for the temporary extension of CTC can bring more money to your family.

The 2021 CTC payments are expected to arrive in July and are paid periodically during the year-end. You can receive up to $ 3,600 per qualified child, depending on the age of the child and your age adjusted gross income (AGI)For example, if you have a single income of less than $ 75,000 and you have a child under the age of 6, you qualify for $ 3,600.

Here’s everything we know about who is considered a qualified dependent for the new child discount. In addition, if you are still waiting for your $ 1,400 incentive payment, here is when it could come how to track it and possible reasons why it has been delayedPlus, here’s what you need to know about one possible fourth stimulus control

Any child 17 and under can be eligible to receive a CTC payment of a specified amount

If you have dependents who are 17 or younger, they can each count towards the new child tax credit. However, the amount they qualify for depends on their age. Children between the ages of 6 and 17 each count up to $ 3,000. Children under the age of six can charge up to $ 3,600 each.

The current child tax credit offers families $ 2,000 per child ages 16 and under, so adding an extra $ 1,000 to $ 1,600 per child can help families significantly financially. In addition, the new CTC will add 17 year olds to the mix.

Persons between the ages of 18 and 24 may be eligible for partial payment

If you are a dependent 18 years old, they can qualify for up to $ 500 each for the amount of the child discount you receive. If you have a dependent between the ages of 19 and 24 who is attending college full-time, they may also qualify for up to $ 500 each for your total amount, according to the new incentive bill.


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Babies born in 2021 are eligible for benefits

If you expect your baby to arrive before the end of 2021, the newborn will also be eligible for up to $ 3,600 on the child discount. This includes children who are adopted, assuming they are US citizens (more below). You will likely be able to use the IRS portal as soon as it becomes 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 Tax Foundation. While it’s unclear when the portal will open, it will likely be open in July, when the IRS is expected to send the payments.

In any case, the child must live with you part-time

If you are claiming the new child discount for your child, keep in mind that they must live with you for at least six months a year. However, there are exceptions to this rule, including temporary absence. “A person is believed to have lived with you during periods when one or both of you is temporarily absent due to special circumstances,” the IRS said on its CTC web page. This includes illness, education, business, vacation, and military service.

A newborn child born later in 2021 also falls under the exception and is considered to be living with you all year round. The IRS will be working on the 2020 tax return, which according to Joanna Powell, general manager and CFP at CBIZ, will not have children born in 2021, so don’t forget to update your information in the portal.


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Your child must be a U.S. citizen with a Social Security number

If your child isn’t a U.S. citizen and doesn’t have a Social Security number, there’s no getting around this: they don’t qualify. When you file your individual income tax return (Form 1040), be sure to include your family members and their Social Security numbers when you claim them for the child discount.

This also applies to adopted children. An adopted child who is not a U.S. citizen and has an ATIN or ITIN (Adopted / Individual Taxpayer Identification Number) is not eligible for the child discount, according to the IRS. “The child must have an SSN to be an eligible child to be eligible for the child discount.”

In contrast to the third stimulus check, this is true households of mixed status could get a check and only one household member needed a social security number.

For more information, here everything you need to know about the 2021 child discount when the CTC payments will come and qualifications for parents to receive the payments


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