Parents to Receive Monthly Child Tax Credit Payments Starting July 15th
Are you a parent? Do you have dependent children? If you answered yes to both, then you may qualify for the monthly Child Tax Credit payments starting this July.
What is the Child Tax Credit (CTC)?
The Child Tax Credit is a tax refund program offered by the government to help offset some childcare-related costs for parents. The CTC will provide parents a different amount of money depending on the age of the child(ren). Parents will receive $3,600 per child under the age of six (6) and a total of $3,000 per child ages six (6) through seventeen (17) over the course of one year.
What makes me eligible for CTC?
Two key requirements need to be met to be eligible for CTC. The first requirement is to make sure that the income made from one or both parents is lower than the income limits imposed by the government. The yearly income limits are under $75,000 for single filers, $150,000 for married couples filing together, and $112,500 for the head of household filers.
You can use a CTC calculator to help you determine how much money you would get if you exceed the income limits, yet you still wish to apply.
Secondly, the child must be under the age of eighteen (18) by the end of 2021, have a valid social security number, and be a United States citizen.
How to apply for CTC.
If you meet these requirements, there is a section for you to claim the Child Tax Credit when filling out your 2020 annual tax return. The specific area allows you to disclose the age and number of kids living in your household. If you've already filed your 2020 tax return and claimed the child tax credit, you are already enrolled.
If you did not or have not filed your taxes in 2020, you can still apply and receive the benefits of CTC by using the Child Tax Credit Non-filer Sign-up Tool. It is important to keep in mind that you must not have a gross income exceeding $12,400 for a single person or $24,800 for a joint couple if you want to apply for CTC using this method. On the other hand, this claim can't be used for a child born in 2021 or if you were married at the end of 2020 and failed to disclose your partner's income.
How does my money get distributed?
Once your taxes have been filed, the IRS will start distributing monthly payments beginning on July 15 for half of the owed amount. The other half will be given as a lump sum payment when filing your 2021 tax return. For example, if you have two children, ages two and four, you will receive $3600 for each child by next year's tax return date, meaning you will receive a total of $7200 for the year.