We all know April means spring, taxes season… and a new chapter of changes at the Social Security Administration. But for those taxpayers who have not yet filed their tax return and have children: keep your eyes wide open because this article may interest you. The Social Security Administration has changed a few things regarding the Child Tax Credit (CTC), so pay close attention if you are thinking about applying for this credit, because it is important to be informed before doing so. And of course, we’ll tell you all about the changes!
What is the Child Tax Credit?
One of the most valuable tax tools for American families, it is a credit offered by the Administration to those families (who qualify, of course) with underage children, allowing them to provide better parenting and more opportunities.
This check is offered as a refund or as a reduction of the amount owed to the IRS, and families can receive up to $2,000 for each qualifying child.
Who can apply for this check?
This check is intended for families with children under 17 years old (who have never paid taxes) and whose annual income does not exceed $200,000, or $400,000 in the case of joint returns.
What do children need to qualify?
The requirements for children to qualify for the CTC are as follows:
- Be under 17 years old and have never paid taxes
- Have their own Social Security number
- Have a relationship with the person applying for the payment (be a biological or adopted child, stepchild, sibling, grandchild or descendant), and have lived with this person for more than half of the fiscal year
- Be a U.S. citizen or legal resident in the country
And what is the change starting this April?
You already know that you can file your tax return until April 15, but now the Social Security Administration will make it take a bit longer to file, as beneficiaries applying for the CTC will have to verify their identity through the “My Social Security” portal or by visiting an SSA office in person. This is because they want to prevent fraudulent redirection of this type of check. This means you will no longer be able to verify your identity by phone, it will have to be either through the mentioned portal or in person.
Why this change now?
According to data estimates, between 2013 and 2018 many scammers managed to manipulate deposit information, which, as you know, is direct, and redirect $33.5 million that belonged to 20,870 recipients. So now, they aim to secure the system and avoid these types of breaches, so the payment goes to those who actually qualify.
Does this affect those already receiving the credit?
Current CTC beneficiaries will not see changes in their payments due to this measure, they will only be affected if they need to change their direct deposit information, in which case they will need to re-verify their identity.
The acting commissioner of the Social Security Administration assures that this change ensures the protection of SSA records, and that they will not delay sending checks, promising that payments will arrive on the first business day after submitting the notification.
Raising children is hard and expensive, but it’s even more expensive to know there’s a check you can apply for to help raise them and not know how to do it. Apply now if you haven’t filed your return yet, and if not, you will have to wait for the next income season, but don’t forget about it because you can claim it! This money belongs to you (and your children).