Monthly child tax credit payments started July 15.
Sarah Tew/CNETMany eligible parents received their first child tax credit payment through direct deposit on Thursday -- paper checks may take a little longer to arrive. And if you got your money yesterday, how do you know if it's the right amount? Did you receive too much or too little? Our child tax credit can give you a quick idea of how much you're due.
If you're fully eligible for the payment, you could get $300 for each kid under 6 years old and $250 for each kid between ages 6 and 17. Those payments will arrive monthly until December, with the rest of the money coming with your 2022 tax refund. If you'd rather wait to get your money in one lump sum next year, you can opt out of the monthly payment program.
If your payment doesn't add up, we explain below how the math and other requirements work in determining your family's credit amount. Our calculator handles that for you, too. We can also tell you how to sign up with the IRS to manage your child tax credit payments and let you know what to expect during tax season next year. This story gets regular updates.
Watch this: Child tax credit: Everything we know
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See how much your child tax credit payment should be each month
Start here by entering your adjusted gross income and number of kids. (Our calculator will not store or use your data.) The results are based on our current knowledge of the law and should be treated only as broad estimates; the IRS will determine the final amount. We suggest consulting a financial professional if you want a more personalized estimate.
Child tax credit calculator for 2021
Use details from your 2020 tax return.
1. Choose your filing status below.
The child tax credit math is somewhat involved this time around. Let's say the above calculator says that you will receive $3,500 in monthly payments from July through December 2021. That means you should take that total and divide by six to see how much the IRS will send you each month in advance this year.
Here are the basic rules. For parents of eligible children up to age 5, the IRS will pay up to $3,600, half as six advance monthly payments and half as a 2021 tax credit. For each child ages 6 through 17, the IRS will pay up to $3,000, divided in the same way this year and next. For dependents age 18 or full-time college students up through age 24, the IRS will make a one-time payment of $500 in 2022.
If your AGI is $75,000 or less as a single filer, $112,500 as a head of household or $150,000 filing jointly, you'll get the maximum amount. If your income is above the threshold for your filing status, your child tax credit payments will begin to phase out by $50 for every $1,000 of income over it. So, if the calculator above gives you a figure much less than $3,600 total for your 3-year-old, that probably means your household income is too high for the full payment.
Here's when you'll get all the 2021 child tax credit payments
The first child tax credit payment goes out today (July 15) and continues each month through the end of the year. Here's a breakdown of when payments will be deposited and the maximum amount to expect based on the age brackets.
Timeline for child tax credit payments
| Monthly | Maximum payment (newborn to 5) | Maximum payment (6 to 17) | Maximum payment (18 to 24) |
|---|---|---|---|
| July 15, 2021: First payment of the year | $300 | $250 | - |
| Aug. 13, 2021 | $300 | $250 | - |
| Sept. 15, 2021 | $300 | $250 | - |
| Oct. 15, 2021 | $300 | $250 | - |
| Nov. 15, 2021 | $300 | $250 | - |
| Dec. 15, 2021: Last payment of the year | $300 | $250 | - |
| April 2022: Second half of payment | $1,800 | $1,500 | $500 |
What it takes for your dependents to qualify you for payments
There are some specific rules regarding qualifications not just for parents and caregivers, but for the children, too. Here's what to know about dependent qualifications for the child tax credit.
As for your child aging out of a payment bracket, the amount of the credit depends on the age of a child on Dec. 31 this year. So if you have a 5-year-old turning 6 before the end of 2021, 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 2021, you would receive $500 total for that dependent instead of $3,000. If you have a dependent who's a full-time college student and turns 25 this year, you won't receive any payment for that dependent.
Qualifying parents can get money for their newborn babies
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.) This is on top of payments for any other qualified child dependents you claim. Here's our guide for parents of 2021 babies, including what parents of adopted infants should know.
Here's what parents need to know if they don't usually file taxes
The IRS will automatically make the payments for those who filed their 2020 tax return or claimed dependents on their 2019 tax return. If you didn't submit your tax return, the IRS won't know to send you a payment (and also won't know if you've gained dependents since the last tax filing).
If you're a nonfiler and didn't file a tax return this year and don't plan to, the IRS has come up with an alternative. A new "Non-filer Sign-up tool" allows families who don't file taxes to submit an electronic form to let the IRS know how many kids they have and their ages -- including babies born in 2020 and 2021 -- so they can get the correct payment amount.
While the tool is intended to help low-income families enroll in the program, it has been criticized for not being entirely user-friendly. For example, it works better on a computer than a mobile device, and requires that you have access to an email address and understand English.
Parents of 2021 newborns and adopted children can still get upcoming child tax credit payments.
Sarah Tew/CNETParents can get one large payment next year by unenrolling now
If you'd rather get your 2021 child tax credit money as one large payment, you can unenroll from the monthly payments now that the IRS has opened its online portal. That means that instead of receiving $300 per month for your 3-year-old (and the remainder of your money in 2022, for example), you'd wait until you filed your taxes in 2022 to claim the full $3,600.
To stop the advance payments, you need to unenroll three days before the first Thursday of the month. So if you want to opt out of that second payment on Aug. 13, you'll need to do so before the Aug. 2 deadline.
Later on, that same IRS portal will allow people to check on the status of their payments and make updates to their information. Here's the monthly schedule to unenroll.
Child tax credit unenrollment deadline schedule
| Payment month | Unenrollment deadline | Payment date |
|---|---|---|
| July | June 28, 2021 | July 15, 2021 |
| August | Aug. 2, 2021 | Aug. 13, 2021 |
| September | Aug. 30, 2021 | Sept. 15, 2021 |
| October | Oct. 4, 2021 | Oct. 15, 2021 |
| November | Nov. 1, 2021 | Nov. 15, 2021 |
| December | Nov. 29, 2021 | Dec. 15, 2021 |
In shared-custody situations, only one parent can get checks
If you share custody, only one parent can claim the monthly advance child tax credit payments. This may be a surprise for parents that were separated, but both received one stimulus payment each for their child. Parents should also be careful when claiming the child tax credit money because if the child is filed incorrectly, parents may have to repay some or all of the money.
Here's what you can do to avoid a possible IRS overpayment
Your family's eligibility is determined in large part by your adjusted gross income. 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: You'll use the new Child Tax Credit Update Portal to update your information when that happens. If you need to make an adjustment, the IRS will lower the payment amounts you'd receive if your new income reaches the phaseout level, 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 will have to return the excess money on your 2021 tax return next spring, or else accept a smaller 2021 refund or owe more in taxes. Here's more information on how the child tax credit affects your taxes.
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