How does this new tax credit work for babies born in 2021-- we are expecting our first child in August.
The IRS will be updating the Manage Payments portal in the next few weeks so that you can add your child born in 2021 for the advance Child Tax Credit - https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
Hello and congratulations on your upcoming precious bundle! Babies are wonderful for many reason and a big reason is taxes! The Child Tax Credit in 2021 can be up to $3,600 for your newborn depending on your income. Please refer to the following article for qualification calculations: https://turbotax.intuit.com/tax-tips/family/7-requirements-for-the-child-tax-credit/L3wpfbpwQ#2021-c...
Come August when baby arrives you will want to visit the IRS Portal to adjust your tax situation and see if you qualify to receive advanced payments of the Child Tax Credit. Here is a link to the IRS Portal: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
Please keep in mind when filing your taxes next year, you want to indicate that your newborn lived with you for "the whole year" in order to receive the full Child Tax Credit that you are entitled.
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