Here’s How You Can Still Get A Tax Credit Even With Older Kids
You heard about the child tax credit. And then you felt a pit in your stomach when you realized it was only available if you have kids 17 and younger. Ouch. But reel in that feeling of resignation: A one-time payment of $500, which can be taken as a tax refund, is available for families with children ages 18 to 24.
But the IRS has made clear certain eligibility conditions when it comes to qualifying for this one-time payment. Read on to find out if you’re in line for some extra cash.
Do You Qualify For The Young Adult Tax Credit?
The much-talked about child tax credit, which in 2021 included a series of cash payments if you have kids 17 and younger, was initiated under President Biden’s massive pandemic rescue bill. But if your kids have sailed past 17, you may still be eligible for a one-time payment of $500, which can be taken as a tax refund, if your children are ages 18 to 24.
According to the IRS, the following eligibility conditions must be met in order to claim the $500 tax refund:
- A child who’s 18 years old must be claimed as a dependent.
- Children 19 to 24 must be attending college full time.
- Each child must have a Social Security number.
- Certain income limits do apply
If you earn more than $75,000 as a single tax filer, or $150,000 if you’re a married couple filing jointly, and if the income threshold is $112,500 for head-of-household filers, then you will not be eligible for it, as well.
Even if you don’t normally file taxes, you can still apply for the $500 credit using the IRS child tax credit non-filer sign-up tool. If you don’t qualify for the tax credit, take a deep breath, because there are some more ways to give yourself financial breathing room.
If you’re not eligible for the child tax credit or the special $500 payment for young adult children, consider other steps that could help put you in a better financial position.
Consolidate Debt and Reduce Insurance Costs
Carrying multiple high-interest debts, including credit card balances, can make it difficult to get ahead financially. Look into consolidating any owed balances into a single, lower-interest debt consolidation loan. You’ll not only reduce the overall cost of your debt, but also pay it off faster.
You comparison shop when buying a car, furniture, even a house. Why not car and homeowners insurance? Comparison shopping could help you find less expensive policies that offer the same – or even better – coverage. It never hurts to look around.
Refinance Your Mortgage
Refinancing can reap plenty of benefits. According to a recent Zillow survey, nearly half the homeowners who took advantage of the pandemic’s historically low mortgage rates are now saving $300 or more a month. Thirty-year mortgage rates are still hovering around 3%, which means that refinancing could save you thousands of dollars over the life of the loan.
Invest Pennies In A Portfolio
Investing in a portfolio is no longer the purview of just the rich and famous. Today, you don’t need much cash to start earning some extra money in the stock market. Check out popular investment apps, including one that allows you to build an investment portfolio using only “spare change” from your everyday purchases, and you could find that investing is in your best interest.