Grays Harbor, Washington – A lot of you are asking about this. Claiming child/ren on your tax returns can be a little complicated.
The American Rescue Plan Act of March 2021 is designed to assist in the United States’ recovery from the economic impact of the COVID-19 pandemic. Part of the plan includes broadening The Child Tax Credit (CTC). The credit is now up to $3,600 for qualifying children under age 6 and up to $3,000 for children ages 6 up to 18, the full credit amount is refundable, and there is no requirement for earned income.
What you can do:
- Learn first about qualifications.
To claim an exemption for your child, be ready to answer “yes” to all of the following questions:
– Relationship: The child can be your son, or daughter. It could also be your stepchild, eligible foster child, sibling, half sibling, stepbrother, stepsister, adopted child or an offspring of any of them/descendant.
– Age Requirement: Your child must be under age 19 or, if a full-time student, under age 24. There is no age limit if your child is permanently and totally disabled.
– Residency: The child must reside with you or live under the same main home as you for more than half the year.
– Financial Support: The child cannot provide more than half of their own support.
– Who’s Claiming? If two, or sometimes even more, taxpayers claim the same child, the IRS will use the Tie-Breaker Rule to determine who is eligible. The rules establish income, parentage and residency requirements for claiming a child.
- Divorced or separated? Learn who is eligible.
The IRS recognizes the custodial parent as the one eligible to claim the dependent. The non-custodial parent can claim the child tax credit/s for any eligible child/ren, given that the child must be a dependent of the custodial parent.
- Snail mail is still the best.
It is highly recommended to file taxes and claim the child via mail and not via online filing. This is because it is highly likely to be rejected. By sending via mail, IRS will review it and then determine per their rules which parent gets to claim the child.
Talk to Soriano Law for any family law concern that we are able to help you with.
Reach out to us at (360) 249-6174 for a free consultation or read our blogs here to read more about useful tips like this.