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Who is eligible for the 2021 child discount? Everything we know



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Check if you are eligible for the 2021 child discount.

Sarah Tew / CNET

With just a few months for the new Child discount 2021 (CTC) payments are expected to be rolled out to eligible families, it is time to see if you qualify. The new incentive account signed by President Joe Biden offers families more money that it could start seeing as early as July

This time, the amounts of the child discount for each child are higher than in previous years. For a child under the age of 6, parents and guardians can receive up to $ 3,600. So if someone has two kids, they can receive up to $ 7,200 in total. For a child between the ages of 6 and 17, parents and guardians can receive up to $ 3,000 – which works out to $ 6,000 for two children.

So who is eligible for this higher CTC payment and what are the eligibility requirements? We explain it below. This is also what we know about one fourth stimulus check, and if you have your third stimulus check of maximum $ 1,400 per person, here is when it could come and how to track it (or what could be the delayThe IRS asks you not to call regarding a missing payment. Be here six other tax credits to give you more money this year

Parents of children ages 6 and up are eligible for $ 3,000 per child

If you have dependents aged six or older, you qualify for up to $ 3,000 per child, assuming you meet the income requirements (see below). This includes your family members who are 17 years old – originally, parents could claim up to $ 2,000 for each dependent age 16 and under.

You can also get money for your older children, although that’s not nearly as much. You can claim up to $ 500 for an 18-year-old as well as full-time students between the ages of 19 and 24.

Child discount 2021 qualifications

Who is eligible What the law says

Single filter

An AGI of $ 75,000 or less to qualify for the full amount

Head of the household

An AGI of $ 112,500 or less to be eligible for the full amount

Couple filing jointly

An AGI of $ 150,000 or less to be eligible for the full amount

Child aged 5 and under

Credit for $ 3,600 each if the parent / guardian meets the above requirements

Child aged 6-17

Credit for $ 3,000 each if the parent / guardian meets the above requirements

Nonfiler

Must file a 2020 tax return to receive payment

Parents of children 5 and under are eligible for $ 3,600 per child

If your family members are under the age of 6, you can claim up to $ 3,600 per child as long as you meet the income requirements below. That’s $ 1,600 more than the $ 2,000 parents could claim on their 2020 tax returns.

This includes newborn babieseven if they are born later in 2021. The parent company could likely update the portal with their new dependent information to receive the prepayments this year, said Garrett Watson, a senior policy analyst at Tax Foundation. Otherwise, next year, parents can file a claim on their 2021 tax returns. However, everything can change from now on until the IRS gives us more information and makes the portal operational – the IRS has not set a specific timeline for that yet.

Some filers with an AGI of $ 75,000 or less

As long as your adjusted gross income (aka AGI) is $ 75,000 or less, single parents with taxpayers are eligible for the full child tax credit. After $ 75,000, the amount will be phased out gradually.

According to Joanna Powell, Managing Director and CFP at CBIZ, the credit will run out by $ 50 for every $ 1,000 in income above the threshold amounts for all submitters.


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Heads of households with an AGI of $ 112,500 or less

As a householder, your AGI must be $ 112,500 or less to be eligible for the full CTC amount. The amount you could get will start taper off if your income exceeds $ 112,500.

Married couples filing jointly with an AGI of $ 150,000 or less

If you are married and are applying with your spouse, your AGI must be $ 150,000 or less to be eligible for the full CTC amount.

What if you don’t file a tax return? Can you still qualify?

Even if you don’t usually file a tax return – you are considered a non-finder – you need this to qualify for the 2021 child tax credit. IRS Commissioner Charles Rettig said payments will be automatic for those who file their 2020 tax returns before May 17, so if you haven’t filed your tax return by then, the IRS doesn’t know whether to send you a payment.

It’s also important to file a return in case you’ve gotten new dependents since the last filing, that way you can get the full CTC amount you owe.


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Other requirements you must meet

  • The child you claim must live with you for at least six months a year.
  • You and your child must be US citizens, unlike mixed-status households.
  • For married couples filing jointly, at least one spouse must have a Social Security number or an ITIN, Powell said. The child must have a Social Security number – a child with only an ITIN is not eligible (this includes adopted children).

Important: The results here are based on our current understanding of the law, but should only be considered broad estimates. Consult a financial planner for a more personalized estimate.

For more information, here everything you need to know about the 2021 child discount and when your payments might come in


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