How to Collect Your Child Tax Credit

Author: David Hall

The U.S. Rescue Plan is one of the best programs by the United States government. This program houses the U.S. Child Tax Credit, which offers historical assistance to numerous working households. Many families receive monthly payments of roughly $250 or $300/child without having to do anything. All families can benefit from the Child Tax Credit.

Features and the Eligibility for CTC

Is the Child Tax Credit (CTC) for me?

The Child Tax Credit is available to families with kids below 18 kids. Below are the eligibility requirements for CTC.

• If you earn less than $75k as a sole parent or $150k as a married person, you will be eligible for the total payment. You can still collect your child tax credit if you receive less than $240k as a parent or $440k as a married couple.
• You must have spent at least six months in the U.S. last year. (If not, you may qualify for a lower CTC.)
• The kid you are claiming should be yours. Grandchild, niece/nephew, sibling, foster relatives, half-relatives, and step-relatives are also eligible.
• A Social Security Number (SSN) of the child is required. As the parent, you must have a Social Security Number or an Individual Taxpayer ID Number (ITIN).
• The child should be below 18 years at the end of the year.
• The child must have stayed with you for at least six months.
• The kid should not be self-supporting

How do I claim my Child Tax Credit (CTC)?

Start by filling out Form 1040.

Fill out form 1040, U.S. Individual Income Tax Return with your children and other dependents. Submit a filled Schedule 8812, Credits for Eligible Children and Other Dependents.

You should have received your six payments automatically, if you are qualified for advance child tax credit based on your previous year’s filing. If you used the IRS Non-Filer facility to file for Economic Impact Payments in 2020, you should already be registered with the IRS and don’t need to do anything else.

File Your Taxes If Necessary.

If you have not submitted your 2020 or 2021 tax return, you should do so soon.

Use Non-Filer Tool from the IRS.

You can use the IRS Non-Filer tool to complete a simple tax return to allow you to register for advance CTC payments even if you haven’t filed and aren’t obligated to.

The IRS will decide if you qualify based on the information you submitted. Then enroll you in advance payments. You do not need to take any additional steps to get advance payments.

You Can Get more

You could earn the total percentage of the child tax credit once you file your taxes, even if you earned less than you qualified for in the last payments. Furthermore, you may be able to apply the total balance of any leftover child tax credit benefits. Moreover, any outstanding balance will be paid to you as a refund.