The Child Tax Credit: A Tax Break for Nevada’s Working Families

The American Rescue Plan expanded and improved the Child Tax Credit to provide a tax break to working families as the economy recovers from the pandemic recession.

The new Child Tax Credit provides between $3,000 - $3,600 per child to nearly all working families in Nevada, with half of the credit advanced through monthly payments, which will arrive between July and December 2021. The other half of the credit will be paid through 2021 tax refunds.

How do the advance Child Tax Credit payments work?

The expanded Child Tax Credit provides monthly per-child payments between July – December 2021. The amount of the payment depends on the age of your child:

  • $250 per month for children 6-17
  • $300 per month for children under 6

If you filed 2019 or 2020 taxes or used the IRS’ non-filer tool to register for a stimulus check, you do not need to take any action to receive advance payments. If the IRS has your bank account information on file, you will receive the advance Child Tax Credit automatically by direct deposit. If the IRS does not have your bank account information, you will receive a mailed check.

To update your bank account information, click here.

If you have not filed 2019 or 2020 taxes or used the IRS’ non-filer tool to register for a stimulus check, you will need to provide some basic information to the IRS in order to receive advance Child Tax Credit payments. To get started, click here.

Later this year, an additional portal will open on IRS.gov to update household information including income, number of qualifying children, or marriage status.

Who is eligible?

Most families in Nevada are eligible for the expanded and improved Child Tax Credit. To qualify for the full credit, you must earn at or below the following income levels:

  •  $75,000 or less for single filers
  • $112,500 or less for heads of household
  • $150,000 or less for married couples filing a joint return and qualified widows and widowers

To qualify for the Child Tax Credit, your child must have lived with you, in the United States, for at least six months out of the year. One exception to this rule is temporary absences (e.g. when a child or parent is temporarily absent due to special circumstances, including illness, education, business, vacation, or military service.)

Families with mixed immigration status are also eligible. While children must have a valid Social Security number to qualify for the Child Tax Credit, parents with an ITIN number can file for the credit on their child’s behalf, provided that they meet the other income and eligibility requirements. To verify your eligibility for the Child Tax Credit, click here.

To learn more about eligibility for families with mixed immigration status, click here.

How can I receive Child Tax Credit benefits if I don’t file taxes?

Families that are not required to file taxes should use the IRS non-filer portal to ensure that they receive their child tax credit payments in a timely manner.

Families will need to provide the full names, Social Security/ITIN numbers of all adults and children in their household, their email address, mailing address, and banking information. (The IRS will send the advance child tax credit payment by check to the address provided if no banking information is given).

FAQs

What happens if I update my household information (tax information, bank account information, etc.) after one or more monthly payments have already gone out?

Any missed payments will be included in your 2021 tax refund. Make sure to file your taxes in 2021 to ensure that you receive the full amount that you are qualified to receive.

How did the Child Tax Credit change under the American Rescue Plan?

The American Rescue Plan increased the Child Tax Credit from $2,000 to $3,600 for children under the age of six and from $2,000 to $3,000 per child for children over the age of six and raised the age limit from 16 to 17. The law also expanded the benefit to more low-income families and provided advance monthly payments.

What if my child doesn’t have a Social Security number or is over the age of 17?

The Child Tax Credit is only available for children ages 17 and younger with valid Social Security Number. However, taxpayers may claim the Credit for Other Dependents for dependents who do not meet the age requirements of the Child Tax Credit. The maximum Credit for Other Dependents amount is $500 for each dependent who meets certain conditions, including:

  • Dependents who are over age 17.
  • 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.

Are DACA recipients eligible for the Child Tax Credit?

Yes, DACA recipients are eligible for the Child Tax Credit so long as the children claimed in the household have valid Social Security numbers.

Does receiving the Child Tax Credit impact my eligibility for other means-tested programs?

No, receiving the Child Tax Credit will not impact your eligibility for means-tested programs, including Medicaid, the Supplemental Nutrition Assistance Program (SNAP), or Supplemental Security Income (SSI).

Is this new and improved Child Tax Credit permanent?

No. The American Rescue Plan’s changes to the Child Tax Credit are temporary for tax year 2021.

Congressman Horsford strongly believes that the American Rescue Plan’s Child Tax Credit expansion should be made permanent. He is working with President Biden to pass the American Families Plan, which would continue the current Child Tax Credit benefits through 2025, and he is a co-sponsor of legislation that would make the current expansion permanent.

What does this expanded Child Tax Credit mean for Nevada’s Fourth District?

  • 92.1% of children in Nevada’s Fourth District (177,100 children) will gain from the expanded and improved Child Tax Credit.
  • The average benefit for 49,200 households is $3,100.
  • The expanded and improved Child Tax Credit will lift 9,700 children in Nevada’s Fourth District out of poverty.
  • Because of the larger benefit for the youngest children, the expanded and improved Child Tax Credit will lift 3,400 children under the age of six out of poverty.
  • Families with children in poverty will receive $5,200 on average.
  • The expanded and improved Child Tax Credit will lift 3,400 children in Nevada’s Fourth District out of deep poverty.

Statewide, the American Rescue Plan’s Child Tax Credit expansion will deliver disproportionate benefits to children in rural areas. According to the Center for Budget and Policy Priorities, 95 percent of rural Nevada children will benefit from the expansion, compared to 92 percent of Nevada children in metro areas.

For more information on the Child Tax Credit, visit https://childtaxcredit.gov.