Starting this July, the first of seven checks that are part of theshould start going out to you — unless you . The payments authorized in mean half of what you’re due will arrive throughout the second part of 2021, and the other half in 2022. How the IRS will and the can be confusing. For example, if your for 2021 is , you could get less money.
CNET’s child tax credit calculator below can help you estimate how much you could get with each payment. We’ll also explain what happens if your child ages out of a payment bracket. There are also rules thatof a kid should know and additional facts for . You shouldn’t need to file an if you already submitted your taxes (how to ).
The IRS is, including “ ,” and will soon turn its attention to child tax credit payment details. We share what we know so far. You can also see if your and how some could . Here’s what we know about a , how the and . This story has been updated.
Get a personal estimate from the 2021 child tax credit calculator
The new child tax credit raises the 2020 limits from up to $2,000 per child to a maximum of $3,600 — but the situation gets complicated fast. Qualified children aged 5 and under count for $3,600. Kids between 6 and 17 years old count for $3,000 maximum per child; 18-year-olds and full-time college students 24 and under can bring parents a one-time $500 payment.
Enter your details below, including your, to see your payment breakdown. This calculator does not store or use 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 consulting a financial professional 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.
Note: If your AGI is less than or equal to $75,000 as a single filer, $112,500 as a head of household or $150,000 filing jointly, you’ll receive the full amount. For incomes higher than $150,000, your child tax credit payments will begin to phase out by $50 for every $1,000 of income over the threshold.
Can parents opt out of receiving monthly payments this year?
If you’d rather receive your 2021 child tax credit money as one large payment, you’ll be able toonce the IRS opens the online portal to help you make that decision and input other information, like if or other changed circumstances. The IRS is expected to open its child tax credit website by July 1.
Opting out would mean that instead of receiving a $300 per month for your 3-year-old, and the remainder of your money in 2022 for example, you can wait until you file your taxes next year to claim the full $3,600 amount.
What to know about dependents aging out of a payment bracket
If you have a 5-year-old 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 aboutfor you to receive 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.
Parents of 2021 babies: Child tax credit info to know
Children born in 2021 make you eligible for the 2021 tax credit of $3,600 per child (that’s up to $7,200 for twins). That’s on top of payments for any other qualified child dependents you claim. Here’s our guide for, including what parents of adopted infants should know.
Key overpayment and income details
Your family’s eligibility is determined in large part by your. So what happens if you get a new job or start making more money in 2021? What happens if the payments have already gone out and you spent the money?
The IRS has a plan for this, a child tax credit portal the agency will make available by July 1 so you can update your information. If you need to make an adjustment, it will lower the payment amounts you’d receive if your new income, according to Garrett Watson, a senior policy analyst at Tax Foundation.
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 money on your 2021 tax return next spring, according to Watson, accept a smaller 2021 refund or owe more in taxes.
Could my 2020 tax return could affect my child tax credit amount?
You need to file yourto get the credit . The IRS will automatically make the payments for those who have their taxes filed by the , the IRS Commissioner Charles 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 , 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.
More qualifications your dependents need to meet
There are some specific rules regarding qualifications not just for parents and caregivers, but for the children, too. Here’s what to know about. And here’s how .