Confirmed: Child tax credit will be monthly. Here’s how much money you’ll actually get

Calculate how much money you could get from the 2021 child tax credit.


Sarah Tew/CNET

It’s official: The child tax credit payment schedule has been confirmed to start monthly in July, IRS Commissioner Charles Rettig said Tuesday. The monthly payments for the 2021 revised child tax credit will last until the end of the year, with the rest of the money arriving with your tax refund next year. Calculating your child tax credit payment total is complicated and multilayered, which is why we’ve created a calculator tool.

Qualified parents and caregivers can expect to receive between $500 and $3,600 per child from the new credit, depending on their age and your shared custody situation. However, if your income is higher than the cutoff or your child doesn’t meet all the requirements, you could get a smaller amount or none at all. 

Below, you can use our child tax credit calculator to estimate how much money to expect in total. We’ll also explain what happens if your child reaches one of the age brackets by the end of 2021. While you’re here, this is what’s going on with the plus-up payments from the third stimulus checks. Also, here’s what we know about a fourth stimulus check, the situation with student loan forgiveness and savings for health care like cheaper insurance. This story was updated with new information.

Calculate your 2021 child tax credit payment total

Child tax credit payments for 2021 allot up to $3,600 per child aged 5 and under, and $3,000 for kids between the ages of 6 and 17. You can get a $500 total payment for dependents who are 18 and for full-time college students between 19 and 24 years old.

If your adjusted gross income, or AGI, is equal to or less than $75,000 as a single filer, $112,500 as a head of household or $150,000 filing jointly, you’ll receive the full amount. If your income is higher, your child tax credit payments will begin to phase out by $50 for every $1,000 of income over the threshold.

This calculator does not store your data. The results are based on our current knowledge of the law and should be treated as broad estimates only (the IRS will determine the final amount). We suggest you consult a financial planner for a more personalized estimate.

Child tax credit calculator for 2021

Use details from your 2019 or 2020 tax return.

1. Choose your filing status below.

What if you receive a different amount than what was estimated?

If the child tax credit payments you receive starting this summer don’t match the estimate, there could be several reasons why.

Taxes: You need to file your 2020 taxes to get the credit if you’re a nonfiler. The IRS will automatically make the payments for those who have their taxes filed by the May 17 tax due date, the IRS’ Rettig said. So if you don’t have your tax return submitted by this time, the IRS won’t know to send you a payment. Also, if you plan to file a tax extension, you’ll likely be able to use the IRS portal, where you can update your information in case you’ve gained dependents since the last tax filing.

Your child reaches a different age bracket this year: If you have a 5-year-old child turning 6 by the end of the year, the total payment amount you could get for that child is $3,000. If you have a 17-year-old who turns 18 before the end of the year, you would receive $500 total for that dependent instead of $3,000. Here’s more information about qualifications your child must meet for you to get the advance payments. Also, if you have a dependent who is a full-time college student and turns 25 this year, you won’t receive any payment for them.


Now playing:
Watch this:

Child tax credit: How much are you getting?



3:52

What if you start making more money after child tax credit payments are sent? 

If you start receiving advance payments this year for your 2020 taxes, but you get a new job making more money, you’ll likely be able to use an IRS CTC portal the agency will make available to update your information, according to Garrett Watson, a senior policy analyst at Tax Foundation. Doing so would lower the payment amounts you’d receive if your new income reaches the phaseout level (see above).

If you wait until 2022 to update your information when you file your taxes and you continue to receive the full amount based on your lower income, you would either have to return the excess credit on your 2021 tax return next spring, Watson says, or you’ll get a smaller amount on your 2021 refund.

So far, the IRS hasn’t released any further details about the portal, but Rettig said it will launch by July 1.

For more information, here’s when the 2021 child tax credits could be sent, who qualifies for the CTC, and eligibility requirements kids must meet. Also, if you share custody of a child, here’s everything you need to know about getting the payments.


Now playing:
Watch this:

Stimulus check 3: How much money you’ll get



2:32




Source link

Read:  Best wireless headphone deals available now: Beats, Bose, Sony, Sennheiser, Jabra and more

Leave a Reply