Age Eligibility:The credit is now available for qualified children up to the age of 17, expanding eligibility to older children
Increased Credit Amounts:The Child Tax Credit has been significantly increased, providing eligible families with up to $3,000 per child aged 6 to 17 and $3,600 for children under 6
Income Thresholds: The income thresholds for receiving the full credit have been adjusted, allowing more middle-income families to qualify for the maximum benefit
Seven Qualifying Tests: Eligibility for the Child Tax Credit involves seven tests, including age, relationship, support, dependent status, citizenship, length of residency, and family income
Alternative Credit for Others: If unable to claim the Child Tax Credit for a dependent, explore the Credit for Other Dependents as an alternative offering up to $500 per dependent
Advance Payments in 2021: The American Rescue Plan Act facilitated advance payments of the 2021 Child Tax Credit, providing families financial support throughout the year
Temporary Changes for 2021: The 2021 modifications increased eligibility and credit amounts for certain families, allowing the entire credit to be received as a refund, even if no federal income tax is owed
TurboTax Assurance: TurboTax stays current with tax laws, ensuring accurate Child Tax Credit claims. File now to receive your refund promptly
Refundable Additional Credit: While the Child Tax Credit is nonrefundable, the Additional Child Tax Credit allows eligible families to claim up to $1,600 per qualifying child as a refund
Refund Processing: Typically, the IRS processes refunds within 21 days. However, returns requiring review or claiming Additional Child Tax Credit may experience delays
Non-Taxable: The credit is not considered taxable income, providing families with a financial boost without impacting their overall tax liability
Portal for Updates: An online portal has been established to allow families to update their information, such as changes in income or family status, ensuring accurate and timely payments