Are you eligible for expanded child tax credit payments?
Payments for many families begin in July as part of the American Rescue Plan.
There are income and age of child restrictions, and if you are divorced, there are also important points you should understand regarding which parent will receive the check per your child custody arrangement.
The temporary expansion of the child tax credit increases to $3,000/year for children aged 17 and younger, and $3,600/year for children aged 5 and younger
If you have dependents between the ages of 18 and 24 who are enrolled in college full-time, you can receive $500 for them, also.
For example, if you are a single taxpayer parent and your adjusted gross income is $75,000 or less, based on your 2019 or 2020 filing, you are eligible for the full child tax credit amount. At $240,000 single filers phase out of the tax credit completely. If your AGI is in between those two figures, you will receive an amount less than the full amount declining with the rise in income.
If you are married and filing jointly with your spouse, an AGI of $150,000 or less qualifies for the full child tax credit amount. As with a single filer, if your income is above $150,000 up to $440,000 you will receive a portion of the credit. If your AGI is $440,000 or above, you are not eligible at all.
And, if you share custody, only one parent can claim the credit for a given child. If you are proceeding with or thinking about a divorce and negotiating issues related to support and custody, you should understand that the child tax credit is a point to raise in your negotiations and settlement discussions.
Click below for more information on the Child Tax Credit: