The Child Tax Credit is a financial relief to families struggling to keep up with childcare costs. But did you know that, starting in 2021, the Child Tax Credit expanded?
What does the tax credit do?
The Child Tax Credit gives you a financial credit - money in your pocket - that can be used to help cover childcare costs.
A credit is different from a tax refund. A tax refund reduces how much you pay in taxes. A credit is paid to you after finishing your taxes.
What’s updated?
Here’s what you need to know:
How do I know if my child is eligible for the credit?
I didn’t need to file taxes last year. Can I still receive the credit?
Yes. If you have a child and earned less than $24,800 (couple) or $18,650 as a single head of household, use this tool to receive the credit. You’ll need social security numbers for you and your eligible children, a mailing address, phone number or email address, and bank account information, if you want direct deposit.
Does receiving the credit affect my other benefits?
No. The credit does not count as income. That means other benefits, like SNAP, are not affected when you receive the Child Tax Credit.
Where can I find other resources about the credit?
To learn more, the White House has provided extensive resources: https://www.whitehouse.gov/child-tax-credit/