Child tax credit payments will begin in July 2021 and continue through December of that year. Half of the payment is then paid. The remainder will be paid out as a refund for tax returns for the next year. Parents who share custody can claim a child separately as a dependent. But does that mean they are both eligible for child tax credits?
The child tax credit provides a generous amount of up to $ 3,600 for each child. The amount depends on your gross income and the age of the child. For children 6-17 years old, the amount is $ 3,000. For the first time, families who do not pay taxes are also entitled to this payment.
Only one parent can apply for the child tax credit
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Each parent is entitled to a child tax credit. You will need to refund any incorrectly claimed payment. This is a departure from the norm that an overpayment does not have to be returned.
The child tax checks will not be confiscated for previous child support payments. However, any amount that is claimed as a credit for the return in the next year will be offset.
How is the CTC different this time?
For the previous two stimulus payments, families could only apply for a tax credit if they filed a tax return. This excluded many families from the scheme. However, the payments are fully refundable, which means that even those who pay little or no tax are eligible.
The CTC extension
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The child tax credit has been expanded to include older children. People between the ages of 18 and 24 will also receive $ 500 if they are enrolled in colleges. Even children born in 2021 add to the amount their parents receive.
Child tax payments to lift children out of poverty
The payments are expected to reach over 90% of families with children. It will lift nearly 10 million American children out of poverty. Several democratic lawmakers have spoken out in favor of continuing these improvements.
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