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Saturday, May 15, 2021

Know More About The $3,600 Child Tax Credit If You Share Custody Of Your Child

The Child Tax Credit payments are sent to begin in July 2021 and continuing till December of this year. Half of the payment will be paid then. The rest will be paid as a refund against tax returns next year. Parents who share custody can claim a child as a dependant separately. But does that mean they both are eligible for child tax credit support?

The Child Tax Credit gives a generous amount of up to $3,600 for each child. The amount is linked to your gross income and the age of the child. The amount pares down to $3,000 for children between 6 and 17. For the first time families who do not pay taxes also qualify for this payment.

Only One Parent Can Claim The Child Tax Credit

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Anyone parent is eligible for the Child Tax Credit payment for a child. You will have to refund any payment claimed wrongly. This is a deviation from the norm that any overpayment need not be sent back.

The Child Tax checks will not be seized for previous child support. But any amount claimed as a credit in the return next year is subject to an offset.

How Is The CTC Different This Time?

For the previous two stimulus payments, families were eligible to apply for tax credit only if they filed returns. This excluded many families from the scheme. But the payments are fully refundable, meaning that people who pay little or no taxes are also eligible.

The CTC Expansion

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The Child Tax Credit has been expanded and covers even older children. Those aged between 18 and 24 will also receive $500 if they are enrolled in colleges. Even children born in 2021 will add to the amount received by their parents.

Child Tax Payments To Help Bring Children Out Of Poverty

The payments are expected to reach over 90% of families having children. It will lift close to 10 million American children out of poverty. Several Democratic lawmakers have spoken for a continuation of these enhancements.

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