WASHINGTON — Lots of people on social media are dropping this tax tip - If you had a baby in 2021, you'll be getting a big tax break.
But before you pop champagne, let's Verify.
THE QUESTION:
If you had a baby last year, and didn’t get extra child tax credit money, can you get it by filing your taxes?
THE SOURCES:
- Internal Revenue Service- website and spokesperson Luis Garcia
- Henry Grzes- lead manager on tax practice and ethics, Association of International Certified Professional Accountants
THE ANSWER:
They all agree, yes you can.
WHAT WE FOUND:
Under the American Rescue Plan, parents were given the option to get some of the money that typically comes in the form of a tax break, early and in six monthly installments.
Those checks were distributed between July and December.
It also bumped up the credit from $2,000 per child, to up to $3,000 per child 6-17 and up to $3,600 for each child under the age of 6.The amount of money you got was based on your income, and the number of children listed on your 2020 return.
According to our sources, anyone who had a baby, adopted or fostered a child in 2021 can qualify for the enhanced Child Tax Credit, as long as you’re still under the income limit.
"If your income was substantially higher in 2021 than 2020, you potentially are not eligible for as much credit as you would have, based on your 2020 return," Grzes said.
Remember—tax season is important for all parents, new baby or not. Even those who got the advance payments will need to file for the credit to get the other half of their money.
So we can Verify, yes, if you fall within the income threshold and added a child to your family last year, you may be eligible for an extra $3,600 in tax breaks, thanks to the Child Tax Credit.