Your 2021 Baby Makes You Eligible for the Child Tax Credit

Newborn baby sleeping on a white rug.
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Starting on July 15, monthly payments will start rolling out to millions of American families under the expanded child tax credit. If you’re having or adopting a baby in 2021, don’t worry — new parents are also eligible to receive the money offered.

See: Two IRS Portals Are Being Created to Help You Get Your Child Tax Credit Money
Find:It’s Almost Child Tax Credit Time — Are You Eligible?

Although eligibility is based on your 2020 or 2019 tax returns, the IRS opened online portals in early July for registering for to the child tax credit. If you are a new parent you will need to update your number of dependents via the portals to receive the $300 monthly payments. The money will be deposited from July to December for children under 6 years of age, if the household income is within the plan thresholds.

See: Child Tax Credit Payment Schedule Is Out Now – Here’s When You’ll Get Your Money
Find: How to Avoid Paying Back the Child Tax Credit

Make Your Money Work for You

Updating information on the portals will also be important for parents who have already filed last year’s taxes, but might have had other significant changes happen in 2020. For example, if you experienced a decrease in income as a result of the pandemic, while your 2020 income might have been too high to qualify  for the tax credit, you may now fall within the income limits. If you do not update this on the portal, the IRS won’t know to send the monies now owed to you.

In addition, the portals can be used to opt out of the credit. You would do this if your income increased so as not to owe the IRS money when you file 2021 taxes.

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About the Author

Georgina Tzanetos is a former financial advisor who studied post-industrial capitalist structures at New York University. She has eight years of experience with concentrations in asset management, portfolio management, private client banking, and investment research. Georgina has written for Investopedia and WallStreetMojo. 

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