Additional $500 tax credit available for some parents; do you qualify?

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(WJW) — Families across the country for months have been receiving advance Child Tax Credit payments.

The third Child Tax Payment — made on Sept. 15 – was the halfway mark of the available six monthly payments, which started in July and were meant to help families who are struggling financially during the pandemic.

For families who are signed up, each payment is up to either $250 a month or $300 a month, depending on the child’s age. The remaining money will come in one lump sum with tax refunds in 2021.

But what if a family has a child older than 17 living with them?

There’s a one-time credit they could receive in 2022. It’s called the Credit for Other Dependents.

According to the IRS, the maximum credit amount is $500 for each dependent meeting conditions including:

  • Dependents who are age 17 or older.
  • Dependents who have individual taxpayer identification numbers.
  • Dependent parents or other qualifying relatives supported by the taxpayer.
  • Dependents living with the taxpayer who aren’t related to the taxpayer.

The credit begins to phase out when a taxpayer’s income is more than $200,000. The phaseout begins for married couples filing a joint tax return at $400,000.

Those who meet the conditions above can claim the credit if:

  • The taxpayer claims the person as a dependent on their return.
  • The taxpayer cannot use the dependent to claim the Child Tax Credit or Additional Child Tax Credit.
  • The dependent is a U.S. citizen, national or resident alien.

Taxpayers can determine their eligibility by using the IRS’ Interactive Tax Assistant on .IRS.gov.

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