Lately, there has been a lot of talk about the monthly payments going out to some families as part of the expansion of the Federal Child Tax Credit that was included in President Biden‘s American Rescue Plan. Eligible families are receiving up to $300 for every child under the age of six, and up to $250 for each kid ages six to 17, every month through the end of the year, and possibly longer. But what about families that have older kids, ones who might be in college? Well many of those households are also going to get some money – $500 in fact.
As part of the same Federal Child Tax Credit, qualified households with a dependent child who is 18 to 24 and attends college full-time will receive a one-time payment of $500. To be eligible for the full amount, a single filer with the dependent college student needs to make less that $75,000 a year, a head of household needs to earn less than $112,500 annually, and a married couple or joint filers would have to make under $150,000 a year. For every $1000 above those amounts, the tax credit drops by $50.
Those aren’t the only requirements though – you also have to pay more than half of your child’s expenses, and claim them as a dependent.
The good news is that if you have more than one child in college and meet all the criteria for the credit, you can get $500 for each kid.
The money will come when you file your taxes in 2022. You can learn more about it at the IRS website here.