Saudade: News from and for the Brazilian community/Notícias de e para a comunidade brasileira

Child Tax Credit


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What is the Child Tax Credit?

This week’s column is another opportunity to discuss the Child Tax Credit, which starts this week on Thursday, July 15. In March of 2021, Congress expanded the Child Tax Credit as part of President Joe Biden’s American Rescue Package. It is believed that such an initiative could potentially reduce child poverty by half.

Qualifying families in the United States will receive up to $300 per child every month until December of 2021. Suppose you have children under 18 years old and are a single parent who makes less than $75,000 — in that case, you qualify, if you are the head of a household and earn $112,500, you are eligible for it as well, and lastly, couples whose annual combined income is $150,000 qualify to receive the monthly payments under the Child Tax Credit. Payments for ages 0 to 5 years are $300 a month and ages 6 to 17, $250 a month.

The IRS will pay half of the total credit amount in advance monthly payments beginning this Thursday, July 15, and next year, 2022; people will claim the other half of the credit when they file their 2021 income tax return. For example, if you are expected to receive $3,600 — one child under five at $300— you will either get $1,800 once or $300 monthly from July to December, and you will receive the remaining $1,800 next year after filing your taxes for 2021 next year. Undocumented individuals with children who have social security numbers qualify for this benefit — their child must have acquired a social security number before May 17, 2021. However, this is really important to keep in mind. These undocumented parents with children who possess a social security number must also have individual taxpayer-identification numbers, ITIN, which most Brazilian Islanders have. To apply for an ITIN, you have to file a form W-7:

Guardians such as family members who are raising American children or children with SS can also qualify. In the coming weeks, the IRS will open a portal that will allow individuals to provide updated information if there was an increase in family size in 2021. Any Child Tax Credit money that remains unpaid can be claimed when the 2021 taxes are filed. If you didn’t make enough to be required to pay taxes, you could still sign up for the child credit at as well as for more information. There is no way to read about it in Portuguese. However, there is one in Spanish, which is very helpful: