It all depends on who claims the child on their tax return.
The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them, such as a grandchild, niece, or nephew, said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown.
The child must be under age 18 at the end of 2021, not providing more than half of their own support for 2021 and must have lived with you for more than half of 2021, Keily said. Additionally, the child must not file a joint return for the year, must be a U.S. citizen, U.S. national, or U.S. resident alien and have a Social Security number.The maximum amount you claim for the credit is $3,000 or $3,600 in the case of a child who is younger than 6, he said TFor 2021, these threshold limits are $150,000 for joint returns or surviving spouses, $112,000 for heads of households and $75,000 for singles, he said.
And, the credit is fully refundable which means you get the credit even if it exceeds your income tax, Kiely said.because he meets all the requirements,” he said. “Your daughter is not entitled because she does not meet the requirements. Specifically, she does not claim the child as a dependent on her tax return.”