If you’re eligible for the confirmed the payments will be monthly starting in July., your family can expect to start receiving payments this summer, and the rest of the money when you file your taxes in 2022. On Tuesday, IRS Commissioner Charles Rettig
Aside from the income requirements you need to meet, yourto meet. If all qualifications are met, you can receive up to $3,000 for older kids and $3,600 for younger ones. The IRS will likely give more details about the child tax credit payments, but we already know the broad outlines, including and .
Keep reading for more details about the child tax credit delivery schedule, including how often payments could come, what to know about an overpayment, how to correct any errors and what happens to yourof one or more children. If you’re , you can . Here are and what the story is now with . This story was recently updated.
Is there an official date yet for when the first child tax credit payment will be delivered?
We know the month it will arrive, but a specific date hasn’t been released. The IRS will make additional information about the expanded child tax credit available “as soon as possible,” the agency said in a statement March 12. See our chart below for the timeline.
Timeline for the CTC payments
|July 2021: First payment received in 2021|
|December 2021: Last payment received in 2021|
|April 2022: Completion of 2021 CTC payments|
Remember the child tax credit will be split between 2021 and 2022
The first thing to know is you won’t get your child tax credit payments all at once this year. As with your taxes, the child tax credit in the stimulus bill is for 2021. The “credit” part means the amount you owe in your taxes will be reduced by the “credit” you gain from your eligible dependents. That could either reduce your payment to the IRS for your 2021 taxes (filed in 2022) or else increase your. Normally, you’d receive that “credit” as a tax refund in 2022. But the plan is to bring you money sooner, which is why the checks will start coming in 2021 as “advance payments.”
This logic also explains why your 2021 child tax credit is split into two parts. The first part, in 2021, is the advance payment you can start using right away. The second part will apply to your 2021 taxes — which are filed in 2022. Yes, it’s confusing. Hopefully, we answer some of your questions below.
Key details for parents who share custody
For the first two stimulus checks, some parents whobut weren’t married to each other were entitled to each claim money for the same child. That was only if they alternated years for claiming the dependent — in other words, if one parent claimed the child on their taxes in odd years and the other claimed the child on their taxes in even years.
This is no longer allowed for the third check, and we’re told it won’t work that way for the child tax credit payments either. Here’s what we know so far about the.
How the child tax credit payment amount will look this year
To reiterate, the amount you receive will be half of what you’re owed for the year under the, and you will receive the other half of the payment with your , filed in 2022.
The payments will be up to $300 per month for each qualifying child age 5 and under, and up to $250 per month for each child between the ages of 6 and 17. Note that this amount phases out for those with higher incomes — for single people earning more than $75,000 per year, heads of household earning more than $112,500 per year and married couples earning more than $150,000 a year. Your child tax credit payments will begin to phase out by $50 for every $1,000 of income over those threshold amounts, according to Joanna Powell, managing director and certified financial planner at CBIZ.
So if you qualify for $3,000 and you have one dependent, you’d get an estimated $250 per month from July to December, for a total of $1,500. You then need to claim the rest of your child tax credit amount when you file your 2021 taxes next year (2022). Here’s more on the.
You canto get an estimate of how much you could get.
2021 child tax credit amount
|Age||Amount you could get per child|
|Age 5 and under||Up to $3,600, or $300 a month if monthly payouts occur|
|Ages 6-17||Up to $3,000, or $250 a month if monthly payouts occur|
What payment method will the IRS use to send your child tax credit money?
The way your child tax credit money arrives could very well depend on, Powell told CNET. The IRS has changed this in the past, so we’ll need to hear official guidance from the agency.
For example, if you gotvia in your bank account, it’s quite possible your child tax credit could arrive that way, too. If you receive , it’s possible you might get your payment on a Direct Express card. might also have a different delivery method.
Paper checks andare other delivery methods used for stimulus checks. We’ll keep our ear to the ground for emerging details and will provide updates as we learn more.
How filing your 2020 taxes could impact the CTC amount you’ll get
Taxpayers said March 12. Rettig said payments will be automatic for those who , the new tax deadline.related to the new legislation and shouldn’t take any other “unnecessary steps,” the IRS
However,to get the credit, even if they don’t usually submit tax returns. This will let the IRS know how many dependents are in the household who count toward the child tax credit benefits.
The IRS CTC portal will open by July. Here’s what that means for everyone expecting payments
The IRS will launch an online portal by July 1, Rettig said, but the IRS won’t have the resources to build this until . Once the child tax credit portal is available, recipients can log in to update their information if their circumstances have changed. For example, if you have a child in 2021, the IRS wouldn’t have that information on file yet, so updating those details may help you get a larger tax credit payout.
Will the IRS expect you to return money if you get more than you were supposed to?
Yes. The child tax credit isn’t as flexible as the. If you receive more money than you should have, you will have to pay it back. One example of this happening is if you and the other parent of your child (who is not your spouse) are .
When you file your 2021 tax return (in 2022), if your tax situation isn’t what the IRS has in its system and you weren’t entitled to as much as you received, you’ll have to give the overpayment back. To avoid this tax inconvenience, make sure all your information is updated before the payments start arriving. Powell estimates the portal will be open ahead of time so you can make any necessary adjustments.
Can you get the full child credit payment at once, instead of smaller monthly payments?
Yes, but not this year. If you thought you could cash in on all the child tax credit money in July, that’s not the case. Instead, you can opt out of getting the monthly advance payments and receive a lump sum in spring 2022 as a credit when you file your taxes. That means you’d get a larger total in your tax refund or owe the IRS less money because the credit would be deducted from your total.
You’ll be able to use the online portal to opt out. Again, you wouldn’t receive any money until 2022.
What you can expect when the new child tax credit monthly payments finish in December
The final advance payment of the child tax credit is scheduled to end by Dec. 31, 2021, with the rest coming in 2022 with tax season. But President Joe Biden wants to make the higher payments permanent, White House Press Secretary Jen Psaki said March 16: “We’re having those discussions with Congress.”
For more information, here are the. Plus, here’s and how to track .