Can I get the Child Tax Credit if I Give My Baby Up for Adoption?

During the Covid-19 Pandemic, while people were dealing with sickness, lockdowns, and school closures, the Government began providing cash assistance in the form of the American Rescue Plan to certain US citizens to stimulate the economy. Many US residents who had never received government aid before benefited from unemployment compensation, food programs, and other initiatives. Eviction moratoria were established, and other regulations were put in place to allow Americans to stay on their feet or “get back” up if they were having a hard time.

One of the major assistance programs that were launched was the “Child Tax Credit.” These monthly child tax credit payments were mailed out to taxpayers in households with children. If you are considering giving up your baby for adoption, you might be wondering if the child text credit is still an option for you. Read on to understand more about whether this is something that you could still take advantage of if you end up choosing to put your baby up for adoption.

What is the IRS child tax credit?

The child tax credit is a stimulus check that was created to help single mothers, lower-income families, and their children. The child tax credit can be worth up to $1,000 per child, and it is available to qualifying families even if the child does not have a Social Security number. This credit and prepayment stimulus was available in 2021 and has not yet been renewed for 2022. Although it is being discussed, it is not likely that the prepayments will be reinstated. Even if you are eligible to receive the child tax credit prepayment stimulus check, it is not a good idea to plan on it coming through in 2022.

How does the child tax credit stimulus check work?

The child tax credit was a monthly child tax credit payment that was mailed out to taxpayers in households with children. To qualify for the child tax credit, you must meet the following requirements:

The child must be under the age of 17
You must claim the child as a dependent on your tax return
Your child must have a valid Social Security number, or an ITIN (Individual Taxpayer Identification Number)
Your child must live with you
Your income must be below certain limits

Even if you missed the prepayment checks in 2021, there still is a child tax deduction that will be made on your taxes if you are parenting your child. This has been around since the 1980s and has helped families reduce their income tax burden with a refund. Although it is helpful come tax time, it does not put additional money or cash in your bank account each month. And while there were income limits in order to qualify for the tax credits, the gross incomes were significantly higher than for other similar benefits in the past. So, there were many more eligible children for this program.

How much money will parents receive with the child tax credit?

The child tax credit amount will depend on the child’s age, your marital status, and income level. If you are a single mother or parent with one child under 17 years old (as of the end of 2020), then you might be eligible for up to $3000 per year through 2021 into 2022 that was created by Congress specifically so parents could use these funds toward their childcare expenses.

It is important to note that qualifying families must earn less than $200k as individuals or couples filing jointly before receiving this benefit because they believe those earning above these levels should not need any additional help.

Do I still get the child tax credit if I place my baby for adoption?

Unfortunately, the answer is no. You do not still get to claim your baby as a dependent on your taxes if you have decided that adoption is the best option for you. The child tax credit prepayment program that was offered in 2021 will not be available to you unless requirements are changed and if the credit is renewed in 2022. You will, however, have the option to receive financial assistance during your adoption by means of medical bills, rent, transportation, and other situations.

This is where an adoption agency, like Open Arms Adoption Network, can be of assistance. Established and trusted adoption agencies can provide you with full details on how they can help you during the adoption process. If there are specific needs that you require, be sure to discuss this immediately when you are ready to reach out for support. Until then, be sure to read more about adoption living expenses and how that may help you during your journey.

Getting help with adoption expenses

If you choose adoption for your baby, you will have the opportunity to receive financial assistance for qualified adoption expenses. This comes in various ways depending upon state laws and local regulations. Things you can expect to receive help on during the adoption process generally consist of rent or living expenses, groceries, medical payments or reimbursement, and other situations that may occur.

It is unfortunate that the child tax credit payments have not continued to further support single parents and families struggling during the Covid-19 pandemic. Financial hardship is one of the most common reasons pregnant women, just like you, choose to move forward with an adoption plan for their baby. Finding a loving family for your baby is possible as there are thousands of adoptive parents ready and waiting to adopt a child. You can browse our waiting family profiles or contact us 24/7 (1.888.673.6276) to speak privately with one of our adoption social workers about your situation.