The first child discount payout will ship in July, with monthly payouts through December – the rest of the payout will come in next year. (If you’d rather get one big payment, you can.) can also receive the checks this year. You can get up to $ 3,600 per qualified child, depending on the age of the child and your age . For example, if you have a single income of less than $ 75,000 and you have one child under the age of 6, you qualify for $ 3,600.
The IRS should release more details as the date approaches for the first payment of the child discount. In the meantime, this is how President Joeand what we know about a possible and . This story has been updated.
Children up to and including 17 years are eligible for a child discount
If you have dependents who are 17 or younger, they can each count towards the new child tax credit (CTC). 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 6 can charge up to $ 3,600 each.
The previous 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 are eligible for partial benefits
If you are a dependent of 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.
Babies born this year are also eligible for money
If you expect your baby to arrive before the end of 2021, the. 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’s likely in July when the IRS is expected to send the payments.
What you need to know about dependents with disabilities
Children with disabilities may qualify for the child discount and deduction separately from the child discount, Watson said. You may be able to claim this credit if you paid costs for the care of an eligible dependent to enable you to work, according to the IRS. Watson says the child discount would apply in the same way to children with disabilities.
If you share custody of a dependent, here’s what you need to know about the child discount
Double-dipping benefits for the same child worked for the first two incentive checks, with a loophole entitling unmarried parents to share custody of both, in a specific situation. Which . In fact, an overpayment can result in you being asked to pay the money back to the IRS.
The dependent must live with you for at least half of the year
When applying for the new child tax credit for your child, keep in mind that they will have to live with you for at least six months a year. However, there are exceptions to this rule, including temporary absence. According to the IRS, “a person is believed to have lived with you during periods when one or both of you is temporarily absent due to special circumstances,” including 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. However, the IRS will be working on the 2020 tax return, which according to Joanna Powell, Certified Financial Planner and general manager at CBIZ, will not have children born in 2021, so don’t forget to update your information in the portal.
More requirements that your child must meet
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 truecould get a check and only one household member needed a social security number.
For more information, here, and .