The year 2021 marked the introduction of the most substantial Child Tax Credit (CTC) in the annals of U.S. policy, with benefits reaching as high as $3,600, dependent on qualifying conditions. While the nationwide roll-out of this financial support has been completed, California residents retain the opportunity to apply for this benefit. This guide will assist you in navigating the process to claim your entitlement.
The state’s social services division, California Department of Social Services (CDSS), informs that the augmented CTC provision, offering as much as $3,600 for each eligible child, remains accessible for claims. Residents aiming to avail of this benefit must ensure they file their tax return for the year 2021 by the deadline of April 18, 2025.
2021 Child Tax Credit Guidelines Maximizing Your Benefit for Young and Older Children
The enhanced CTC established for the fiscal year of 2021 was designed with specific income thresholds in mind, targeting taxpayers with children under the age of 6 for a benefit up to $3,600. For children aged between 6 to 18 years, a benefit of $3,000 was made available. It was expected that for the fiscal year 2021, these tax credits would be claimed within the subsequent tax filing year, 2022.
The prevailing tax regulations allowed a three-year window from the original tax filing deadline to make any such claims, thus setting April 18, 2025, as the final date for claiming the 2021 enhanced CTC for those who haven’t yet done so.
The age of the children during the year 2021 is pivotal for the claim; current ages surpassing the initial range do not affect eligibility, ensuring that those who qualified then can still receive their full entitlement. For instance, a child who turned 5 years old in 2021 would now be between 6 and 7 years old; however, this age progression does not impact the potential $3,600 benefit that would have been allocated had the taxes been filed in 2022.
To proceed with claiming the expanded $3,600 CTC, here are the necessary steps:
- Submit a tax return for the year 2021, incorporating Form 1040 and Schedule EIC, provided you have a qualifying child. If you’ve already filed a tax return for 2021 without claiming the CTC for which you were eligible, you will need to submit an amended return.
- Moreover, the Golden State offers its own Young Child Tax Credit (YCTC), which amounts to $1,083 for residents who meet the criteria for the California Earned Income Tax Credit (CalEITC) and are parents to a child under 6 years old.
Commencing from the 2022 fiscal year, eligibility for the YCTC can be established even in the absence of earned income, provided the following conditions are met: the aggregate of your wages, salaries, tips, and other forms of employee compensation does not surpass the threshold of $32,490, regardless of California withholding applicability.
For households with a single qualifying child and a maximum income ceiling of $30,000, there’s a potential to receive up to $1,843 via the CalEITC. Families nurturing two eligible children may be awarded up to $3,037, and those with three or more qualifying children could garner benefits up to $3,417 from this fiscal incentive.