The Administration for Community Living (ACL) is working to raise awareness of the Child Tax Credit and, of specific interest to the Massachusetts Healthy Aging Collaborative network, the eligibility of grandparents raising grandchildren.
A one-page flier has been developed for stakeholders to raise awareness among grandparents who are legal guardians, which is available here.
What is the Child Tax Credit? The Child Tax Credit provides money to support American families — helping them make ends meet, more easily afford the costs of raising children, or save for their children’s future. Studies show that it has helped people with the most basic essentials, including food and rent, as well as costs related to school, after school, saving, and paying down credit cards. About half of middle-income parents report spending their child tax credit payments on their mortgage, rent, utilities, or a car payment.
Here is some important information to understand about this year’s Child Tax Credit:
- Increased amount: The American Rescue Plan significantly increased the amount of Child Tax Credit a family could receive for 2021, typically from $2,000 to $3,000 or $3,600 per qualifying child. It also made the parents or guardians of 17-year-old children newly eligible for up to the full $3,000.
- Income eligibility: All eligible families can receive the full credit if they made up to $150,000 for a married couple or $112,500 for a family with a single parent in 2021.
- Advance monthly payments: The American Rescue Plan—for the first time ever—provided tens of millions of families with advance monthly payments between July and December of 2021 worth up to one-half of their estimated full annual credit amount.
- Your remaining credit: Families, including those who received part of their Child Tax Credit as monthly payments last year, can get their remaining Child Tax Credit by filing a tax return this year.
- Non-taxable: The Child Tax Credit, including the monthly payments received last year, are not taxable.
- Does not affect other benefits: Receiving the Child Tax Credit will have no impact on anyone’s eligibility for, or lower the amount, of other federal benefits.
- File your taxes to receive your full credit: If you qualified for monthly Child Tax Credit payments but did not receive them, you will receive the full credit amount when you file your tax returns.
- For parents and legal guardians: Anyone, including grandparents, who are legal guardians may be eligible for the Child Tax Credit.
Find out more information at www.ChildTaxCredit.gov