Child tax credit 2021: Calculating the total is a brain-buster, but it could bring more than stimulus checks – About Your Online Magazine


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

Sarah Tew / CNET

Find out how much you can expect from third stimulus check it’s hard enough, with new income limits and more dependent counting towards payment at this point. (AND extra payments, if you have more.) The new child tax credit is even more confusing, which will calculate payments based on your income and your children’s age and then dividing payments over the second half of 2021 and in 2022.

But it’s worth moving your arms around, since expanded child tax credit is one of the ways Congress is helping families receive or keep their money, including savings for health care as cheaper insurance and extra unemployment checks together with stimulus checks.

Our child tax credit calculator can help you understand the confusion and tell you how much money you should expect in total. We’ll also explain what happens if your child reaches one of the age limits between 2021 and 2022. Here’s what parents sharing custody should know. While you are here, here are nine unusual stimulus verification facts, and what do we know about a fourth stimulus check and student loan forgiveness. This story has been updated recently.

Calculate the total payment you could get from the new child tax credit in 2021 and 2022

Under American Rescue Plan Legislation, child tax credit payments for 2021 are earmarked for up to $ 3,600 per child aged 5 and under and $ 3,000 for children aged 6 to 17. You can get a total payment of $ 500 for dependents aged 18 and for college students on time between 19 and 24 years old.

If your adjusted gross income, or AGI, is $ 75,000 or less as a single filer, $ 112,500 as head of the household, or $ 150,000 as a joint deposit, you will receive the full amount. If your income is higher, your CTC payments will start to decrease by $ 50 for every $ 1,000 of income over the limit, according to Joanna Powell, managing director and certified financial planner at CBIZ.

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

Child tax credit calculator for 2021

Use the details of your 2019 or 2020 income tax return.

1. Choose your filing status below.

What if your CTC payments don’t match the above estimate?

If the CTC payments you receive starting this summer do not match the estimate, there could be several reasons.

Taxes: You need to file your 2020 taxes to get credit if you are a non-archiver. The IRS will automatically make payments to those who have their taxes filed by the May 17, tax due date, IRS Commissioner Charles Rettig said. Therefore, if you do not have your tax return submitted by that time, the IRS will not know whether to send the payment. In addition, if you plan to file a tax extension, you can probably use the IRS portal, where you can update your information if you have gained dependents since your last income tax claim.

Your child reaches a different age group this year: If you have a 5 year old child who turns 6 at the end of the year, the total amount of payment you can receive for that child is $ 3,000. If you have a 17 year old who turns 18 before the end of the year, you will receive $ 500 in total for that dependent, instead of $ 3,000. Here is more information about qualifications that your child must meet for you to receive prepayments. In addition, if you have a dependent who is a full-time college student and turns 25 this year, you will not receive any payment for it.

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

If you start receiving upfront payments this year for your 2020 taxes, but get a new job making more money, you can probably use an IRS CTC portal that the agency will make available to update your information, according to Garrett Watson, a policy analyst senior in Fiscal Foundation. This would decrease the payment amounts you would receive if your new revenue reaches the elimination level (see above).

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

So far, the IRS has not released further details about the portal, but Rettig said will be released on July 1st.

For more information, here is when 2021 children’s tax credits can be sent, who qualifies for the CTC and eligibility requirements that children must meet. Also, if you share child custody, here’s everything you need to know about getting paid.

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Paula Fonseca