The child tax credit is a fully refundable tax credit for families with eligible children. The expansion of the American Rescue Plan child tax credit will reduce child poverty by (supplementing) the income of families receiving the tax credit and () making the credit available to a significant number of new families. For 30 years, these partnerships have connected low- and moderate-income people with tax benefits such as the Earned Income Tax Credit (EITC), the Child Tax Credit (CTC) and Voluntary Tax Assistance (VITA). The child's age helps determine the amount of the child tax credit that eligible parents or guardians can receive.
However, the continuous improvement of benefits and monthly payments would require the passage of new legislation. This section will help you identify the child tax credit payments you have received and differentiate them from other tax benefits. You can apply for the child tax credit for every qualifying child who has a valid Social Security number to work in the United States. For official guidance, see IRS Publication 972, Child Tax Credit and Credit for Other Dependents.
Receiving child tax credit benefits will not change the amount you receive from any other federal benefit, including unemployment insurance, Medicaid, SNAP (formerly food stamps), SSI, SSDI, TANF, WIC, Section 8, or Public Housing. In previous years, families could only receive their child tax credit in a lump sum when they filed their tax returns. In addition, the American Rescue Plan extended the full child tax credit permanently to Puerto Rico and the United States. You may qualify for the credit for other dependents for a child or dependent who is not a qualifying child for the purposes of the child tax credit.
Territories will receive this vital financial assistance to better support the development, health and educational level of their children. Filing a tax return is how families will get all the benefits of the child tax credit for which they are eligible. Dependents eligible for this credit include children ages 18 (and 17 under TCJA rules) and children ages 19 to 24 who were in school full time for at least five months of the year. The Get It Back campaign helps eligible people apply for tax credits and use free tax filing assistance to maximize time.
Whether they have received monthly advance payments or not, eligible families can apply for their remaining Child Tax Credit benefits when file a tax return this year.