Thalia Sevilla December 28, 2021
The Additional Child Tax Credit (CTC) is a credit found on Form 1040-PR. This form is an IRS return that must be filed by those who are self-employed and who have generated an income of more than $400.00. Some changes for this year are:
- The American Rescue Plan increased the maximum amount of the Child Tax Credit to $ 3,600 for qualifying children under the age of 6 and $ 3,000 per qualifying child between the ages of 6 and 17.
- The 2021 Child Tax Credit changes have lower income limits than the original Child Tax Credit.
- All credit is fully refundable by 2021. This means eligible families can get it, even if they don't owe taxes.
- Families with adult dependents, ages 18-24, can receive $ 500 for each.
- Have been a resident of Puerto Rico (for the current year to which you are applying).
Have one (1) or more eligible children:
- Qualifying children are those known as a son or daughter, stepson or stepdaughter, foster son or daughter, brother, sister, half-brother, half-sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandson, your niece, or his nephew).
- You must be under 18 years of age at the end of 2021 and be younger than you (or your spouse, if you file a joint return) unless you are permanently and totally disabled (handicapped).
- You did not provide more than half of your own support during the year 2021.
- He lived with you for more than half of the year 2021.
- He was a citizen, national, or resident alien of the United States.
- There is no minimum income requirement, although the amount of the credit begins to decrease from the reported $ 75,000 annually ($ 150,000 for married couples).
How do I apply for the CTC?
To request it, you must fill out Form 1040-SS if you are a taxpayer who did not have a source of income from the United States and you are not required to file the federal return. In the case of taxpayers who do have a source of income from the United States, you must use Form 1040.
Note: You can use the calculator offered by Fortaleza to find out how much you would receive if you qualify. Taxmania offers a way to fill it out in simple steps. To get to this option you must choose the year 2021, then the 1040-PR / SS option, and finally, the Child Tax Credit. Upon arrival, the steps are as follows:
- Basic information
- Fill in your personal information as a taxpayer. Choose your marital status. If you are married, add your spouse's information
- Enter at least one (1) dependent under the age of 17. He must have lived with you, the taxpayer, for more than half the year
- Enter your W-2 form (s)
- Refund Information
- Here you will be told whether or not you are eligible for the credit. If eligible, you will be asked for an account number and route where the refund will be deposited.
- File return
- Here you will be asked for the electronic signatures and information necessary to file your return
For more information about the Child Tax Credit press here.
Note: Only one taxpayer can claim the Child Tax Credit, even if the eligible child lived in more than one household during the tax year. If one parent has primary custody of the child, that parent usually receives the tax credit. In joint custody cases, the parents must come to an agreement on when each will claim the credit, in alternate years or in some other way.
IRS makes available an online tool for families with dependents who qualify can check whether they are registered or update their bank details to begin receiving benefits.
Do you feel ready to apply for the CTC? Take advantage and fill out your 1040-PR / SS form today in an easy, fast and secure way in Taxmania.