Learn What a Child Tax Credit Is and How to Apply for It

The American Rescue Plan Act of 2021 includes the Child Tax Credit. This program will start advance payments in July 2021 and end on December 31, 2021, for taxpayers who have qualifying dependents. This year, you can claim up to $3,600 for each qualifying child, which is an increase that will only apply to the 2021 tax year as long as you can meet all the qualifications.


Am I Eligible to Receive the Child Tax Credit?

If you can claim at least one child dependent under the age of 17 on your 2021 tax return, you may be eligible for the Child Tax Credit. 

The following are some of the eligibility requirements for the child tax credit. 

Your child:

  • Must be the U.S. citizen, U.S. National, or U.S. Resident Alien
  • Must be claimed as a dependent on your 2021 Federal Tax Return 
  • Must have lived with you (the taxpayer) for more than half of 2021

You (the taxpayer requesting the tax credit) must have earned at least $2,500 in 2021.

Also, Read: Does My Child/Dependent Qualify for the Child Tax Credit or the Credit for Other Dependents?

How Much Could I Get for the Child Tax Credit?

For children under the age of 5, you may qualify for up to $3,600. And for children between the ages of 6-17, you may be eligible for up to $3,000. Single filers earning more than $75,000, heads of households earning over $112,500 annually, and married filing jointly couples earning $150,000 or more will likely not qualify for the full child tax credit amount.

Also Read: Advance Child Tax Credit Payments in 2021

When Will I Get My Tax Credit Payments?

Half of your approved payment will be paid monthly between July thru December. This means the maximum you could receive on your monthly check is $300 for children under five and $250 for children from 6 to 17 years of age. The rest of the payments will be in the form of credits of 2021 tax refund to be paid in 2022 when you file your taxes.

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Kimmy Burgess

Kimmy Burgess is the Manager of Cash in a Snap, which helps clients get connected to its large network of reputed lenders to obtain quick cash advances when they need it most. Kimmy has over 20+ years' experience in Administrative Management, with many years in the lending industry. Her expertise includes customer service, client services and other functions in the payday lending business. She has also spent time in the mortgage industry prior to her move into the payday lending field. Kimmy has a number of pets including cats, birds, and a Chinese water dragon.

Category: Tax Planning

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