Child tax credit money already hitting bank accounts
Parents, check your bank accounts: The first child tax credit payments have been sent. The money is split between the tax credit and actual payments, and how much you get could vary.
It varies, but in general: For every child 5 and under, parents can expect $300, and $250 for kids 6 to 17. But factors like your income could adjust that number; if you make $75,000 or less as a single filer, or $150,000 filing jointly, you will get the maximum amount. Only one parent can claim credit for any one child, as the IRS rules state that each dependent can only be claimed by one taxpayer, so the parent who claims the child as a dependent on their tax return gets the checks and tax break.
Lots of Southwest Florida grandparents take care of their grandkids. Are they eligible for the tax credit? It depends on a few factors, so we asked a tax expert: Kirushanthy Balachanthiran, of the Balachanthiran Law Firm.
“If they are providing at least 50% support for the child during the last year, and the child lived with them at least half the year, then if they claim them as a dependent and the child is not, you know, filing their own tax return” then the grandparents would be eligible, Balachanthiran said.
$300 can buy a whole lot of diapers, parents. But because these payments are part of the American Rescue Plan, designed to pull poorer families out of poverty and encourage spending to help businesses, there aren’t any limits on what you can buy with the money—you can spend it on anything from diapers to a car payment to school supplies. This child tax credit calculator lets you put in your information and nd the age of your child in order to calculate what your payments will be.