What is the Enhanced Federal Child Tax Credit and how do I receive it?

What is the Enhanced Federal Child Tax Credit?  

The Enhanced Federal Child Tax Credit was part of the 2021 American Rescue Plan Act (ARPA) which increased the 2021 Child Tax Credit from $2,000 per child to $3,000 per child over the age of six and $3,600 per children under the age of six. It also increased the age limit from 16 to 17 years.   

Under the American Rescue Plan of 2021, advance payments of up to half the 2021 Child Tax Credit were sent to eligible taxpayers from July to December 2021. Eligible families received $300 monthly for each child under the age of six and $250 monthly for each child between 6-17 years old.  

Who Qualifies?  

For the 2021 tax year, eligible families are those with a modified adjusted gross income under $75,000 for single filers, $112,500 for heads of household, and $150,000 for those married filing jointly. The Internal Revenue Service (IRS) has a tool to help you check your eligibility for the 2021 Child Tax Credit- you can view it here.

How can I receive the Child Tax Credit? 

Now that 2021 is over, all eligible families can claim either the remaining or full amount of the Child Tax Credit.  

• If you received advance payments, you can claim the rest of the Child Tax Credit, if eligible, when you file your 2021 tax return. In January 2022, the IRS sent you a document called “Letter 6419” that shows the total amount of advance Child Tax Credit payments that were disbursed to you during 2021. Keep this letter regarding your advance Child Tax Credit payments with your tax records.  
  • If this situation applies to you, please review these steps from the IRS on reconciling the payments you received and claiming the remaining amount.  

• If you did not receive advance payments, you can claim the full amount of the 2021 Child Tax Credit if you’re eligible by filing a 2021 tax return (even if you don’t normally file a tax return). When you file your 2021 taxes, you will confirm that you're eligible for the credit and then claim the full amount you're entitled to based on your 2021 income and the number of qualifying dependents.  
  • If this situation applies to you, please review these steps from the IRS.  

This information from the IRS breaks down the steps required to claim your Child Tax Credit for 2021. Please see attached for PDF versions and non-English languages.  

 

Frequently Asked Questions: 

Will this affect other benefits I receive?  

• No. Receiving Child Tax Credit payments is not considered income for any family. Therefore, it will not change the amount you receive in other Federal benefits. These Federal benefits include unemployment insurance, Medicaid, SNAP, SSI, SSDI, TANF, WIC, Section 8 or Public Housing.  

I had a baby in 2021. Am I eligible for the Child Tax Credit? 

• Yes, parents of newborns in 2021 are eligible for the Child Tax Credit and can claim the credit when they file their 2021 return.  

Do I need a Social Security number (SSN) to be eligible for the 2021 Child Tax Credit?  

• Children must have an SSN to be eligible for the Child Tax Credit. Parents are not required to have an SSN, but they must have an Individual Taxpayer Identification Number (ITIN) to claim the tax credit for their eligible children.  

Are DACA recipients eligible for the 2021 Child Tax Credit?  

• Yes, qualifying residents, including DACA recipients, are eligible for the Child Tax Credit so long as the children being claimed in the household have a valid Social Security Number (SSN). DACA recipients who are dependents of ITIN filers can also be claimed for the 2021 Child Tax Credit because they have valid SSNs.  

Will receiving the 2021 Child Tax Credit affect my immigration status or my ability to get a green card?  

• No, receiving the Child Tax Credit or other tax credits that you are eligible for will not affect your immigration status, your ability to get a green card or your future immigration plans. Use of tax credits is not considered in a “public charge” determination by U.S. Citizenship and Immigration Services.  

Where can I get tax help?  

• Call 211 or visit www.earnitkeepitsaveit.org to find a free tax preparation site near you.    

For more answers to Frequently Asked Questions, please visit www.irs.gov/childtaxcredit2021  or clasp.org if you are from an immigrant household.