What You Need to Know About the Tax Credit for Children

 The Child Tax Credit is a credit that you can report on your IRS taxes if you are a United States resident with a child under 18. Your income has to be under the limit, and you must have tax information on file from 2020.

Who Qualifies

 Those who qualify for the Child Tax Credit must meet specific parameters. How are you eligible for the credit this year? First of all, your child needs to reach 18 and no older by the end of the year 2021. 

 If they have a birthday where they turn from 17 to 18 in November, you’re in luck. If their birthday from 17 to 18 is in December, you qualify. If, for some reason, your child’s birthday from 18 to 19 is anytime on January 1st, 2021, or later, you will not qualify for the credit. 

 Anyone who is over 18 by the end of 2021 will not qualify as a child for credit purposes. Your child’s age must be within the requirements. 

 Second of all, you need to be a resident of the United States. This means that your child must be issued a United States Social Security Number. The credit parameters do not clarify whether or not you need to have your social security card itself on hand. Still, you do indeed need to have been issued a social security number. You must have this identity set of details to qualify for the credit.

 You also must have a home in the United States, and you must occupy the house for at least half of the year. It simply isn’t enough for you to have a home that you visit two months out of the year or less in the United States. It would be best if you were at least a halftime resident of the United States.

 Another alternative qualifier is that your spouse can own a home that they occupy for half of the year. It would help if you were sure that your spouse is residing in the home for at least half of the entire year, six months to be exact. 

There is no debating this subject, and your spouse must remain at least a halftime resident of the United States to qualify for the credit. It would help if you had the home in the United States that you live in.

 To qualify for this credit, you also need to have filed your 2019 or 2020 tax return. You must have submitted your tax documents to the United States offices to qualify for the credit. You can’t wait to file your taxes until it is too late. You want to make sure that you are eligible for the credit. Your tax returns must be on paper or online with tax services.

You should have given your information for the Economic Impact Payment. There must be a record that you have offered your bank account details, address, and contact to qualify for the credit. 

You must be able to see a record that all of this has been handed to the appropriate offices. These qualifications will make it so that you can receive the credit.

When Can You Expect to Get Paid

You should expect to get paid your credit within a certain amount of time. The payment is broken down into two portions. The two portions of this payment are given before you file your taxes and after. The first portion of your payment is received in monthly payments starting on July 15th. 

You will receive the second half of your credit after you file your taxes. The second half of the payment will be sent out when you file your 2021 tax return. This is a near-instantaneous process, and you should expect to get the credit in your bank account almost as soon as you give your tax forms to the offices. The credit is a beneficial program that helps families thrive and succeed in earning a better quality lifestyle.