The child tax credit (CTC) is $2,000 per qualifying child, and depending on income there is possibly a refundable portion of the credit up to $1,400. This is based on income and whether the full $2,000 is able to be used against the income tax.
If Congress passes any new COVID bill and if the CTC is part of that bill, there will be more information released to determine next steps for taxpayers who have filed their return already. It may not be retroactive, it may only go forward.
Qualifying Child for the CTC
A child qualifies you for the CTC if the child meets all of the following conditions.
- The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half brother, half sister, or a descendant of any of them (for example, your grandchild, niece, or nephew).
- The child was under age 17 at the end of 2020.
- The child did not provide over half of his or her own support for 2020.
- The child lived with you for more than half of 2020 (see Exceptions to time lived with you , later).
- The child is claimed as a dependent on your return. See Pub. 501 for more information about claiming someone as a dependent.
- The child does not file a joint return for the year (or files it only to claim a refund of withheld income tax or estimated tax paid).
- The child was a U.S. citizen, U.S. national, or U.S. resident alien.
Exceptions to time lived with you.
A child is considered to have lived with you for more than half of 2020 if the child was born or died in 2020 and your home was this child's home for more than half the time he or she was alive. Temporary absences by you or the child for special circumstances, such as school, vacation, business, medical care, military service, or detention in a juvenile facility, count as time the child lived with you.
- For more information see IRS Publication 972.
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