Dear Penny: Can you get $ 250 of baby credit per month if your only income is SSI?

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Expensive Penny,

My daughter is disabled and her solely revenue is SSI. Her 6-year-old son can also be partially disabled, affected by autism and ADHD. Are you able to benefit from the brand new baby tax credit score beginning in July? If you happen to can, how do you current your 2020 taxes since you haven’t any revenue aside from your SSI?

J.

Expensive J.,

Sure, it appears to be like like your daughter will qualify for the expanded baby tax credit score. Sometimes, at the very least $ 2,500 of earned revenue is required to qualify for the kid tax credit score, which is mainly cash you make working.

However in 2021 the foundations are completely different. You do not want earned revenue to qualify for credit score. So so long as your daughter can declare your 6-year-old grandson as an worker for tax functions – which implies she offers greater than half of her assist – she ought to qualify for that cash, even when Supplemental Safety Earnings (SSI) is her solely. supply of revenue.


Because the dad or mum of a kid between the ages of 6 and 17, you have to be eligible for $ 250 starting July 15 and persevering with till December. Then, he’ll obtain the opposite $ 1,500 of the $ 3,000 credit score at tax time subsequent yr.

To be secure, your daughter ought to submit a tax return even when it isn’t obliged to take action. You possibly can submit one even when you do not have taxable revenue. The best manner to do that is to make use of a free tax return software. Your daughter might want to enter each her personal social safety quantity and that of her baby. For revenue, you’ll be able to merely enter $ 1. The IRS can reject it as a clean return in the event you enter it as $ 0. Offering your checking account and direct deposit routing numbers will aid you receives a commission as quickly as doable.

In case your daughter has acquired the three stimulus checks that got here out since April 2020 and has acquired funds on behalf of her son, the IRS most likely has the knowledge they should get your daughter that cash.

However as of June 1, the IRS has been urging individuals to file their 2020 tax returns as quickly as doable to make sure they get credit score rapidly. So till we’ve additional directions I am going to go forward and archive because it’s free and solely takes a couple of minutes.

Robin Hartill is a Licensed Monetary Planner and Senior Author at The Penny Hoarder. Ship your onerous cash inquiries to [email protected].


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