Parents claiming older dependents, between the ages of 18 and 24, would receive $ 500 for each of them under the Biden Administration’s Child Tax Credit (CTC) extension.
Although the greater amount of money under the tax credit or $ 3,600 would apply to parents with children 5 years old or younger, those claiming dependents over 18 years of age, they could receive a one-time payment of $ 500 each.
The requirement to claim CTC money for elderly dependents is that they are studying full time at a university, requires a report this week in CNET.
$ 500 per college student claimed as a dependent
The third and first stimulus bill under the Biden Administration increased the maximum Child Tax Credit in 2021 to $ 3,600 for children under 6 years old and $ 3,000 per child for children between 6 and 17 years old. Families who so wish will receive from July 15, 50% of the credit in monthly checks for less than $ 250 to $ 300. The rest of the money must be claimed on a tax return during the 2022 tax season.
In the case of college students who live with their parents, if they claim them as dependents, they would receive a one-time payment of $ 500.
IRS will open portals to claim “Child Tax Credit” on July 1
The IRS is preparing to open two portals on July 1 for taxpayers who want only a one-time total payment under the program to notify the agency through these services.
The sites will also make it easier to apply for the credit in cases where potential beneficiaries are not required to file taxes with the IRS.
The office already has a virtual assistant or online application through which the user can verify if they are eligible for monthly payments under the “American rescue plan.”
When you answer the interview through the IRS.gov website, the system will inform you – within minutes – of your eligibility for the additional funds.
First advance payment under the credit this July 15
The first advance payment under the “Child Tax Credit” will be processed next July 15th. From there, the IRS will distribute six additional checks for each month until December to taxpayers who do not request a single payment.
Amount per family will depend on the age of the children and income level
In addition to the age of the dependents, the amount of the check per family will depend on the income of the individuals, since, as with the third stimulus check, a gradual reduction of the funds applies to zero depending on what the income earns. applicant or applicants for the loan.
For the CTC, the same parameters apply to calculate income eligibility as in the third check of $ 1,400, whose distribution process continues by the IRS.
The entire credit applies to individuals with children and gross adjusted income of $ 75,000 or less; $ 150,000 or less for couples, and $ 112,500 for single mothers or heads of household.
The gradual reduction begins to apply to people who report higher incomes than the previous ones.