Child Tax Credit (CTC)
What You Should Know About the Child Tax Credit in 2021
-
$3,600 for children ages 5 and under at the end of 2021
-
$3,000 for children ages 6 through 17 at the end of 2021
-
Phased out to $2,000 if your income exceed $75,000 for Single, $112,500 for Head of Household, $150,000 for Married Filing Jointly
-
$0 if your income exceed $200,000 for Single and Head of Household and $400,000 for Married Filing Jointly
-
IRS FAQ Link for additional questions regarding Advanced Child Tax Credit
-
The Child Tax Credit under 2018 tax reform is worth up to $2,000 per qualifying child.
-
The age cut-off increased to under 18 (the child must be under 18 at the end of the year for taxpayers to claim the credit).
-
The child must have a valid SSN to qualify for the Child Tax Credit.
-
Child must be related to the taxpayer in one of several ways (son, daughter, grandchild, etc.),
-
Must live in the taxpayer’s home more than half the year in the United States, and must not provide more than half of his or her own support.
-
Dependent must be a U.S. citizen or U.S. resident, such as a greencard holder.
-
The refundable portion of the credit is limited to $1,400. This amount will be adjusted for inflation after 2018.
-
The earned income threshold for the refundable credit is lowered to $2,500.