Have A New Child In 2021? You’re Probably Eligible For A Bigger Tax Refund

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DID YOU KNOW: Families who had a baby or adopted a child in 2021 may be able to qualify for Child Tax Credit advance payments now. If you became a parent in 2021, you may be able to get up to $5000 back in tax credits—keep reading for more information!

What credits will I receive if my child is born in 2021?

Even though your 2021 tax return is based on your information from 2020, you still may be eligible for the credit boost. Eligible parents can get the payment for their 2021 newborns when they file taxes in 2022. The aid package passed by Congress in March enhanced the child tax credit. Families are eligible for $3,600 per child under 6 and $3,000 under 18.

Who qualifies?

Single filers who make up to $75,000/year in adjusted gross income, heads of households earning $112,500 or less a year, and couples filing jointly making up to $150,000 per year can qualify for the entire credit. According to the IRS “if the child is your dependent in 2021, you may claim a 2021 Recovery Rebate Credit for the child if you’re eligible for the credit on your 2021 tax return that you will file in 2022.”

How much is the total I could receive?

The increased child tax credit, along with the Recovery Rebate Credit mean families who meet the income threshold can be eligible for up to $5,000 when they file their 2021 taxes and include their new child as a dependent. 

How can I claim this money?

New parents can update their number of dependents in the CTC portal. If you had a baby or adopted a child in September 2021 for example, you can receive a monthly payment of $300 from October through December. If your child was born or adopted between July and September, this amount (up to $900 total) will be included on your tax refund for 2022. Before this year, there was a minimum earning of $2,500 to qualify for the credit. This requirement has been removed

Where do I find this information?
Here’s a list from the IRS of frequently asked questions on the third stimulus payment and CTC. Visit the Child Tax Credit Update portal to enroll for advance payments and adjust your information.

Kaley LaQuea is an award–winning print and digital journalist who’s been creating content since 2008. She’s passionate about economic, environmental and social justice. She has an unhealthy relationship with caffeine and two cats: Totoro and Mononoke.