Answer: Yes. If you meet all the other rules for taking the child tax credit, you can claim the credit for your d Form 1040 this year. The age for children qualifying for the credit for 2021 is 17 and under (a change from 2020’s requirement of 16 and under).
New Babies in 2021
Question: What if I had a baby last year? How do I calculate the child tax credit on my 2021 return?
Answer: Because the IRS does not know about the baby, you would not have received advance payments with respect to this child. But you’ll be able to account for your child when you file your 2021 tax return this year. Provided you are otherwise eligible to take the child credit, you can take a child tax credit of up to $3,600 for your baby on your 2021 Form 1040.
Not Required to File Tax Returns
Question: I generally do not file tax returns because my income is below the threshold required to file. Should I file anyway for 2021 to claim the child tax credit?
Answer: Yes. Remember that the 2021 child tax credit is fully refundable for families who live in the United States for more than one half of the year. That means under the rules for the 2021 tax year, people who qualify for the child tax credit can receive the full credit as a refund, even if they have no tax liability.
You don’t need to be employed or online payday loans in ID otherwise have earnings to claim the credit on your 2021 return and get a refund sent to you. Just fill out Form 1040 and Schedule 8812, reconcile the child credit you’re entitled to with any monthly child credit payments you received last year, and have the excess credit refunded to you.
Families who received advance payments of the child tax credit last year must file a 2021 tax return to compare the payments you received with the amount of the child tax credit you can properly claim on your 2021 return.
Shared Custody of Children
Question: My ex-husband and I share custody of our 12-year-old child. We have an agreement that my husband claims the child tax credit in even years, and I get it in odd years. Can I claim the full child tax credit on my 2021 return even if my husband received monthly payments last year?
Answer: Yes. The IRS looked at 2020 tax returns to determine who was eligible for monthly child tax credit payments in 2021. Since your ex-husband claimed your child for 2020 (an even year), he is the one who likely received the child tax credit payments last year. Your husband should have used the IRS’s Child Tax Credit Update Portal to unenroll from payments so that he won’t have to repay any amount back when he files his 2021 return. But no matter whether your ex-husband did that does not impact your ability to claim the full amount of the child tax credit when you file your 2021 tax return.
Social Security Numbers for Children
Answer: No. Only children with Social Security numbers qualify for the child credit. You must put your child’s name, date of birth and Social Security number on your 2021 Form 1040.
Although children must have Social Security numbers, you can have either a Social Security number or an individual taxpayer identification number.
IRS Letter 6419 on Monthly Payments
Question: I don’t remember the amount of advance child tax credit payments I got in 2021. Will IRS send me a letter letting me know how much I received?