TAXES
Are you eligible for the Child Tax Credit if you get Social Security or SSI?
The Child Tax Credit is one of the most valuable tax benefits for parents and guardians. Can those who receive payments from the SSA claim them?
On Monday, 29 January, the IRS will begin processing tax returns and delivering refunds. Those looking to get their Tax season has officially begun in the United States. Approximately 168 million people are expected to file individual tax returns within the next few months. If you haven’t completed your tax returns yet, it’s worth considering your eligibility for various tax credits.
One of the most widely used tax credits is the Child Tax Credit (CTC), which provides a tax benefit to families with qualifying children. Even low-income individuals who are not required to file taxes can claim this support.
If you meet the eligibility requirements for the CTC, you can claim the credit on top of any Social Security or Supplemental Security Income support you receive. Moreover, any money you receive from the CTC will not impact your eligibility for Social Security Administration (SSA) programs since tax credits do not count as income.
How to claim the Child Tax Credit
If you have children or any other qualifying dependents living with you, you may be eligible for a valuable tax credit known as the Child Tax Credit (CTC). To make sure you receive this support, remember to list all of your dependents on IRS Form 1040, which is the standard individual income tax return form.
Make sure to attach a completed Schedule 8812 form to check if you are owed any money from advanced Child Tax Credit payments made in 2021.
Claimants for CTC must have a child who is a dependent for tax purposes and meets the following criteria:
- No older than 16 at the end of last year
- A son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother or half-sister; or a descendant of one of these
- Must not provide more than half of their financial support
- Must have lived with the claimant for at least half of the year
- They may not file a joint return with a spouse
- Must be a US citizen, nation or resident alien
Individuals with a yearly income exceeding $200,000 or couples filing jointly with an income over $400,000 are not eligible for full support. However, they may still be able to claim a partial credit. To determine if you meet the requirements for the Child Tax Credit and to calculate the amount of credit you are eligible for, you can use the IRS’ Interactive Tax Assistant online tool.