Child Tax Credit

What is the Child Tax Credit?

 

The Advance Child Tax Credit is a new option for the Child Tax Credit (CTC) which began in July. Families who claim the Child Tax Credit receive monthly deposits, or paper checks, directly from the IRS!

Thanks to the American Rescue Plan Act, the CTC has been increased for 2021. Families claiming the CTC will receive up to $3,000 per qualifying child between the ages of 6 and 17 and $3,600 per qualifying child under the age 6 at the end of 2021.

The IRS has identified a problem that is keeping parents in “mixed-status” families from receiving the credit. They are working on a fix but it is not clear when that will be resolved. We will update this section when we have new information.

 

Things to know about the Child Tax Credit

 

Taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes.

Didn’t file your 2020 taxes yet? It’s not too late! File now to claim your increased Child Tax Credit and other credits like the federal EITC, CalEITC and Young Child Tax Credit.

The IRS will use the information from your 2020 or 2019 taxes to send your payments automatically.

Frequently Asked Question

Frequently Asked Questions

 

How will you get this money?

You may see a direct deposit in your bank account from the IRS of up to $300 dollars per child. Or you may receive a check or debit card in the mail.

Do I have to pay this back? Is it a loan?

No, it is not a loan. It is an advance of money you would get back from your tax return. The monthly payments equal half of the expected tax credit for each child. You receive the other half when you file your taxes.

What if I don’t qualify for the full Child Tax Credit when I file my taxes next year?

Your family’s circumstances may change by the time you file your taxes in 2022, but low-income families are protected from paying back overpayments if they are single filers making less than $40,000, heads-of-household filers $50,000, and married filing jointly $60,000. If you make more than these amounts, you may be required to pay back some funds.

What if I didn’t get the payment? Should I have?

If you have children age 17 or younger, filed your taxes in 2019 or 2020 or received one of the three stimulus payments, and make under $75,000 if a single taxpayer, $112,500 as head of household or $150,000 for married couples, you should receive the Child Tax Credit.

When do I get these payments?

Payments will be deposited or mailed on July 15, August 13, September 15, October 15, November 15 and December 15.

What if I signed up late? Will I still get all my payments?

Yes, if you signed up late, you will still get up to 50% of the credit in advance. For example, if you signed up in August, instead of receiving $300 a month for your 3 year old, you’ll receive $450 a month in September, October, November and December.

My child doesn’t have a Social Security Number (SSN), do I still qualify for the Child Tax Credit?

Unfortunately, no. Your child has to have a SSN for you to qualify for the Child Tax Credit.

My child has an SSN but I have a Taxpayer Identification Number (ITIN), do I still qualify for the Child Tax Credit?

Yes! As long as your child has a SSN, you may qualify for the Child Tax Credit.

What if I didn’t file my taxes in 2019 or 2020? Am I still eligible?

Yes! There is a portal to allow you to share your information with the IRS. For more information about how to use that portal go here. Also, the IRS may have your information if you used the stimulus payments sign-up for people who don’t file taxes (the Economic Impact Payments portal).

What if I don’t owe taxes or don’t file my taxes?

Taxpayers can benefit from the credit even if they don’t have earned income or don’t owe any income taxes. To claim the Child Tax Credit, you can still file your taxes! Or use this IRS portal.

What if my information has changed since I filed my taxes?

Use the update portal to share any changes in your life that will affect the Child Tax Credit. For more information about how to use that credit, please go here.

For more information please visit IRS.gov and WhiteHouse.gov

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