{"id":134436,"date":"2021-07-07T00:00:00","date_gmt":"2021-07-07T00:00:00","guid":{"rendered":"https:\/\/trybeem.com\/blog\/everything-you-need-to-know-about-child-tax-credit-in-2021\/"},"modified":"2024-07-29T08:20:28","modified_gmt":"2024-07-29T08:20:28","slug":"everything-you-need-to-know-about-child-tax-credit-in-2021","status":"publish","type":"post","link":"https:\/\/trybeem.com\/blog\/everything-you-need-to-know-about-child-tax-credit-in-2021\/","title":{"rendered":"Child Tax Credit 2024 | Eligibility and Benefits |"},"content":{"rendered":"\n<p>The IRS has several refundable tax credits and one of them is the Child Tax Credit. This type of credit reduces the taxable income of an individual. In a certain situation, it can also get you a refund even if your taxable income is $0.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Child Tax Credit?<\/strong><\/h2>\n\n\n\n<p>Child Tax Credit is a form of refundable tax for parents who have dependent children under the age of 18.&nbsp; For each dependent child under the age of 17, you can claim a refundable tax credit of $3,000. For a child under the age of 6, you are eligible to get a refund of $3,600.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility criteria<\/strong><\/h2>\n\n\n\n<p>To qualify for the child tax credit, follow this criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In 2020, your modified adjusted gross income should be under $400,000 in case you and your spouse are filing jointly. It should be under $200,000 for any other filing status.&nbsp;<\/li>\n\n\n\n<li>In 2021, your modified adjusted gross income must be under $75,000 if you are single. If you are filing jointly with your spouse, it should be $150,000, and $112,500 if you are filing as head of household.&nbsp;<\/li>\n\n\n\n<li>The child should have lived with the taxpayer for at least 6 months. They will have had to support the child for 6 months.<\/li>\n\n\n\n<li>For taxes filed for the year 2020, the child has to be under the age of 16&nbsp; on December 31, 2020, to claim a tax credit and for 2021. As of December 31, 2021, the child has to be under the age of 17.<\/li>\n\n\n\n<li>You will not be able to file a joint tax return with the child.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How you can claim credit<\/strong><\/h2>\n\n\n\n<p>Parents can get an advance payment as monthly payments, according to the American Rescue Plan Act of 2021. Here\u2019s how it works:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Parents can claim up to 100% of their Child Tax Credit for taxes filed in 2021 or split how the tax credit by claiming 50% as tax deductions and 50% in cash.&nbsp;<\/li>\n\n\n\n<li>The US Treasury has set up an online portal for applicants claiming 100% of their tax credits at the end of the year. The portal also functions as a database for the <a href=\"https:\/\/trybeem.com\/blog\/2023-irs-mileage-rate-understanding-business-moving-medical-and-charity-mileage-deduction-guidelines\/\">IRS<\/a> to look into factors that influence the amount paid out. This includes things like the child\u2019s age, the claimant\u2019s income and marital status.&nbsp;<\/li>\n\n\n\n<li>The IRS looks into details like how old the children are and assess the most recent tax returns to determine the amount of <a href=\"https:\/\/trybeem.com\/blog\/first-child-tax-credit-check-arrives-on-july-15-heres-all-you-need-to-know\/\">child tax credit<\/a> for each filer.&nbsp;<\/li>\n\n\n\n<li>When parents opt for the cash payment, the US Treasury makes monthly direct deposits across 6 months from July through December 2021.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Claiming Child and Dependent Care Tax Credit<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>With the Child and Dependent Care Tax credit for 2020, you can get a tax credit of up to $3,000 for a child under the age of 13, a dependent parent and a specially-abled spouse. A maximum of $6,000 is usually paid with more than 2 dependents.&nbsp;<\/li>\n\n\n\n<li>For taxes paid in 2021, you can claim up to $8,000 for child care costs for a child under the age of 13, a dependent parent and a specially-abled spouse. You can claim a maximum amount of $16,000 expenses in case you have more than 2 dependents.&nbsp;<\/li>\n\n\n\n<li>Tax credit amount is reduced for those with higher incomes considering the percentage of allowable expenses also decreases.<\/li>\n\n\n\n<li>For 2020, Child and Dependent Care Tax credits are non-refundable. It means any amount leftover will not be refunded if you don\u2019t owe any taxes. However, a refund is applicable for the tax year 2021.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Earned Income Tax Credit&nbsp;<\/strong><\/h2>\n\n\n\n<p><a href=\"https:\/\/trybeem.com\/blog\/are-you-eligible-for-earned-income-tax-credit\/\">Earned Income Tax Credit<\/a> (EITC) is a type of refundable tax credit that is offered to individuals who earn a low to moderate-income. Depending on the filing status of an individual, children and level of income, the credit ranges significantly between $1,502 and $6,728. This tax credit is also applicable to people who do not have kids. However, those with kids can claim a higher tax credit. Use Beem to get a quick and accurate estimate of your federal and state taxes and get the maximum refund.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The IRS has several refundable tax credits and one of them is the Child Tax Credit. This type of credit reduces the taxable income of an individual. In a certain situation, it can also get you a refund even if your taxable income is $0.&nbsp; What is Child Tax Credit? Child Tax Credit is a [&hellip;]<\/p>\n","protected":false},"author":77,"featured_media":167997,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2317],"tags":[351,352,350],"edited-by":[],"class_list":["post-134436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxes","tag-child-tax-credit","tag-credit","tag-tax-credit"],"acf":[],"_links":{"self":[{"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/posts\/134436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/users\/77"}],"replies":[{"embeddable":true,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/comments?post=134436"}],"version-history":[{"count":0,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/posts\/134436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/media\/167997"}],"wp:attachment":[{"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/media?parent=134436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/categories?post=134436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/tags?post=134436"},{"taxonomy":"edited-by","embeddable":true,"href":"https:\/\/trybeem.com\/blog\/wp-json\/wp\/v2\/edited-by?post=134436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}