Author: Shiloh Hills
Since 1997, taxpayers have had access to the Child Tax Credit. While it has undergone a few changes over the years, none were as significant as the 2021 changes, which allowed eligible Americans with children to receive half of their credits in advance, eliminating the need to file tax returns the following year to claim the money. However, these changes may only apply to 2021.
Are you set to collect your child’s tax credit? Did you file them correctly? Continue reading to find out how to recieve Child Tax Credits.
What is Child Tax Credit?
When you file your tax return, the Child Tax Credit (CTC) program deducts the amount you owe the Internal Revenue Service (IRS). It allows you to deduct $2000 from your federal tax liability for each qualifying child under the age of 17.
Who Qualifies for Child Tax Credit?
To be eligible for the child tax credit, there are a few criteria you and your child must meet.
- Criteria for dependents
The child for whom you are claiming the credit must be under the age of 17. The qualifying child must be your biological, adopted, stepchild, foster child, siblings, or descendants of any of these people (such as a grandchild, niece, or nephew). They must also have a social security number. However, if your child does not meet all of the qualifying criteria, you can check the IRS Schedule 8812 or speak with a tax professional.
- Criteria for parents
The annual income limit for married taxpayers who want to file joint tax returns is set at $150,000. They must also have a home (not necessarily their own home) in one of the 50 states in the United States. Single taxpayers are to earn at least $75,000 per year. Additionally, it is critical that parents have their social security numbers.
Your Child Tax Credit
You might not have had to do anything in 2021 because the IRS sent the returns automatically to taxpayers who qualified based on their 2019/2020 tax returns. However, if you didn’t file tax returns during those years because you weren’t eligible but are now – perhaps you have a qualifying child – you’re not out of luck.
If you did not file a child credit return in 2021, you can enroll for payments in 2022. However, you need to do the following:
- Fill out your tax return for 2019 or 2020.
- Use the online non-filer registration tool.
- Sign up for the stimulus check.
- Create an ID.me account to track updates.
Alternatively, if you applied for advanced returns last year but did not receive them, you can get your full 2021 tax returns by filling them out again this year.
Conclusion
Child tax returns are not considered as income, you will not receive any tax on them. Furthermore, filing them will not disqualify you from other government benefits such as SNAP/food stamps. It may also assist you in repaying your IRS debts. Overall, you are eligible for child benefits if you have a child who is related to you and is under the age of 17 and a US citizen.