What Is The 2021 Child Tax Credit Amount?
In 2021, the child tax credit is worth up to $3,000 per qualifying child under age 17. This credit is designed to help offset the cost of raising children, and it's a popular tax break for parents and guardians. The child tax credit is one of several credits available to taxpayers for 2021, and it can be a significant financial help for those with children. Here's what you need to know about the 2021 child tax credit.
How Much is the Child Tax Credit Worth in 2021?
The 2021 child tax credit is worth up to $3,000 per qualifying child. That means, if you have two children that qualify, you can receive up to $6,000 in tax credits. The credit is based on your adjusted gross income (AGI) and is phased out for higher earners. For taxpayers with an AGI of $75,000 or less, you can receive the full $3,000 credit. Those with an AGI between $75,000 and $99,000 are eligible for a partial credit. And those with an AGI over $99,000 are not eligible for the credit.
Who Qualifies for the 2021 Child Tax Credit?
To qualify for the 2021 child tax credit, your child must be under the age of 17 as of December 31, 2021. In addition, the child must be a U.S. citizen, national, or resident alien. The child must also meet the criteria for a qualifying child as outlined in IRS Publication 972. This includes living with you for at least six months of the tax year, being claimed as a dependent on your tax return, and not providing more than half of their own support.
How Can I Claim the 2021 Child Tax Credit?
To claim the 2021 child tax credit, you'll need to file a tax return and complete Form 1040 or 1040-SR. You'll also need to include the child's Social Security number on your tax return in order to claim the credit. You can claim the credit on your return even if you don't owe any taxes. And if you don't have enough tax liability to use the full amount of the credit, you can carry forward any unused credit to a future tax year.
Are There Any Other Tax Breaks for Parents?
In addition to the child tax credit, there are several other tax breaks available to parents and guardians. These include the earned income credit, the dependent care credit, and the child and dependent care credit. All of these credits are based on your income and the number of children you have. You can find more information about these credits and how to claim them on the IRS website.
What Else Should I Know About the 2021 Child Tax Credit?
The 2021 child tax credit is a great way to help offset the cost of raising children. It's important to remember that the credit is subject to income limits and only applies to qualifying children. Additionally, the credit is not refundable, meaning you can only use it to reduce your tax liability. If you don't have enough tax liability to use the full amount of the credit, you can carry forward any unused credit to a future tax year.
Conclusion
The 2021 child tax credit is a great way for parents and guardians to save money on their taxes. It's worth up to $3,000 per qualifying child and can be a significant financial help for those with children. To claim the credit, you'll need to file a tax return and complete Form 1040 or 1040-SR. Be sure to include the child's Social Security number on your tax return to be able to claim the credit. Additionally, there are several other tax breaks available to parents, so be sure to check out the IRS website for more information.