3 ways to see if you qualify for the 2021 child tax credit – About Your Online Magazine


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July 15th is approaching. Do you know if your family will receive an upfront monthly payment of $250 or $300?

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I am not sure if you qualify for child tax credit advance payments from July? Eligibility depends on the age of your dependents, your total income and other factors such as shared custody and where the child lives. In addition, the 2021 Child Tax Credit has different rules and requirements than previous years.

We can give you a quick way to see if you will receive a check next month and tell you how. calculate estimated value. There will also be more information available to you as the IRS distributes payments, including revealing an online IRS portal to help parents update their family details and verify their status.

We will explain to you the pros and cons of eligibility below. If you are looking for more information about child tax credit, read this primer on payments and tips on how use child tax credit money. (Here are more details about stimulus check plus payments and what could be holding your income tax refund.) We update this story regularly.

1. Look out for two IRS child tax credit letters

If a letter from the IRS arrives in your mailbox, don’t worry. It’s probably the tax agency reporting that you’re one of 36 million families who can qualify for a payment. The IRS will mail the letter if it determines that you may be eligible for the child tax credit based on your 2019 or 2020 federal income tax return. If you do not normally file taxes, the IRS may use any information you have submitted online using what is called a tool without filters, to signal your eligibility if you have children.

This is just the first letter telling you that you can qualify. The IRS plans to send a second letter to confirm that you are eligible and to estimate how much child tax credit money you could receive when payments begin on July 15th. To recap, the tax credit is up to $3,600 per child under age 6, and up to $3,000 for each child ages 6-17. When broken down into the monthly advance payments you can choose to receive this year, it’s $300 or $250 per child.

You don’t need to do anything if you receive this letter, except hold it in case you need to refer to it later. Nonfilers and other people who haven’t received the letter, don’t worry yet. Here’s more to know about the letter from the IRSand keep reading for more qualifying tips.


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2. Check the IRS child tax credit portals

By the end of June, the IRS intends to open two web portals to help you get tax credit money for your child. They are a little tricky, but the most important thing to know is that they will tell you if you qualify for the child tax credit and help you monitor your payments.

Online portals also let you add new information, correct or update outdated details – such as the number of children you have – and let you make some other decisions about deleting multiple smaller payments.

$300 cash with calculator

Calculating your child’s tax credit payment in advance can help with the expense budget.

Sarah Tew / CNET

3. Review the child tax credit rules and calculate their amount

Instead of waiting for the IRS to send you a letter, you can pretty easily guess your qualifying status. We think the fastest way is to use our child tax credit calculator. Just enter your annual income and number of children. Don’t worry – the calculator is private and anonymous and does not store or use any of your personal information.

For the most part, the calculator tool will tell you what you need to know. However, there are some unusual qualifications that may arise for some. For example, in some cases it is possible your income will disqualify you.

Meanwhile parents of new babies generally qualifies for the full amount, which may change if you share custody of a child. US citizenship also plays a role, so if any of your children are adopted from another country, you’ll want to make sure you know all of the rules that apply only to children.

For more information, see here how to verify your state owes you money, how could you get cash back for your daycare costs and if you could expect a refund for the unemployment tax reduction.

Paula Fonseca