An IRS notice about the expandedmight’ve already landed in your mailbox. Families that qualify should be receiving important details before automatically receiving the first advance payment on July 15. The newly increased 2021 payments are for up to $300 a month per child, or over the course of this year and next.
As is often the case with anything tax-related, the child tax credit rules can get complicated. To receive the payments, your family needs to bring in less than a certain amount of income, and yourrequirements. That includes . The advance , so parents can choose instead to receive the when they file their taxes in 2022. We’ll explain more below.
Meanwhile, the White House has launched a new informational web page and there’s talk about the American Families Plan extending the child tax credit for five more years. Here’s what’s happening with a potential , what to do if you haven’t received your , and . This story was recently updated.
IRS letter informs families of coming July payments
Earlier this month, the IRS started sending letters to 36 millions families notifying them they may be eligible to receive monthly child tax credit payments, based on their federal income tax return from either 2019 or 2020. The IRS should also have details for eligible families that used an older IRS nonfilers tool to claim a stimulus check.
For those nonfiler families that haven’t done their taxes in a while and didn’t receive stimulus checks, they can now use the “Non-filer Sign-Up Tool” to register for child tax credit payments. Or, if you were planning on filing a 2019 or 2020 return but just haven’t gotten around to it yet, the IRS said to do so as soon as possible so your most recent information is on file for determining your payments.
The IRS will soon send eligible families a second letter with a personalized estimate of their monthly payment.
Get up to $3,600 for each child under age 6
If your dependents are below the age of 6, you can claim up to $3,600 per child as long as you meet the income requirements, which are listed below. That’s $1,600 more than the $2,000 that parents were able to claim on their 2020 tax returns.
This includes, even if they’re born later in 2021. Before next month, parents will be able to update the IRS with their new dependent information in an in order to begin receiving the advance payments this year. Otherwise, parents can file a claim on their 2021 tax return next year.
2021 child tax credit age brackets
|Ages 5 and younger||Up to $3,600 each child, with half of credit as $300 monthly payments|
|Ages 6 to 17||Up to $3,000 each child, with half credit as $250 monthly payments|
|Age 18||$500 onetime check in 2022|
|Ages 19 to 24, full-time college students||$500 onetime check in 2022|
Get up to $3,000 for each child ages 6 through 17
If your dependents are age 6 or older, you’ll qualify for up to $3,000 per kid over the next year, assuming again that you meet the income requirements. This includes your dependents who are 17 years old. In prior years, parents could only claim up to $2,000 for each dependent age 16 and younger.
You can also get money for your older kids, although it’s not nearly as much. You can claim up to $500 for an 18-year-old, as well as for full-time college students ages 19 to 24.
Those earning $75,000 or less (or couples who earn $150,000 or less) get…
Read More: Most families qualify for the child tax credit in July. Income rules, age limits and more