Question 1

What Is the Child Tax Credit?

Accepted Answer

The Child Tax Credit is a tax benefit provided by the U.S. government to eligible families with dependent children. It allows eligible parents or guardians to reduce their federal income tax liability by a specific amount for each qualifying child.

Question 2

Who Qualifies for the Child Tax Credit?

Accepted Answer

To qualify for the Child Tax Credit, you must meet certain criteria. Generally, you must have a dependent child under the age of 17 at the end of the tax year. Additionally, your income must be below a certain threshold, and you must file your taxes using the appropriate status, such as "married filing jointly" or "head of household."

Question 3

How Much Is the Child Tax Credit Worth?

Accepted Answer

The value of the Child Tax Credit varies. As of my knowledge cutoff date in September 2021, it was worth up to $2,000 per eligible child. However, there were income limits that could reduce or phase out the credit for higher-income families.

Question 4

Has the Child Tax Credit Changed Recently?

Accepted Answer

Yes, there have been significant changes to the Child Tax Credit. In 2021, as part of the American Rescue Plan Act, the credit was temporarily expanded. The maximum credit amount increased, and it became partially refundable, meaning that even families with little or no tax liability could receive a portion of the credit as a refund.

Question 5

Are Child Tax Credit Payments Advanced in 2021?

Accepted Answer

Yes, in 2021, the IRS began making advance payments of the Child Tax Credit. These monthly payments, sometimes referred to as "child tax credit checks," were intended to provide financial support to families throughout the year. These payments were based on information from your previous tax returns.