If you earn less than $ 400,000 a year, you probably get a child tax credit check

There is a lot to know about the new child tax credit payments.

Sarah Tew / CNET

Should you expect a payment of the child tax credit when the first checks come out on July 15? If you and your family meet the eligibility requirements, you may be able to do so. It’s not just your eligible dependents that the IRS examines to determine if you are eligible, however. You must also meet the income requirements to achieve $ 300 per month for each child under 6 (including babies born in 2021) and $ 250 per month for each child aged 6 to 17.

Below, we’ll walk you through what you need to qualify for the Child Tax Credit and the monthly total you’ll get. You can also get one big payout instead of several smaller ones by unsubscribing when the IRS opens its two portals. We can also offer ideas for spend or save your money once he comes.

It is always possible that new child tax credit payments extended until 2025 as proposed by President Joe Biden. Families with children should also know claim up to $ 16,000 in child care expenses. As a side note, here is what happens with a potential fourth stimulus control, what to do if you have not received your third stimulus control, when it could come, how to follow it and how to see which could cause a delay. This story was recently updated.

Families with children under 6 could receive a total of $ 3,600 per child between July 15 and next spring

If your dependents are under the age of 6, you can claim up to $ 3,600 per child provided you meet the income requirements listed below. That’s $ 1,600 more than the $ 2,000 parents were able to claim on their 2020 income tax return.

This includes newborns, even if they were born later in 2020. The parents’ filing will be able to update the IRS portal with their new dependent information to start receiving advance payments this year, said Garrett Watson, senior policy analyst at Tax foundation. Otherwise, parents can file a claim on their 2021 tax return next year.

2021 Child Tax Credit Qualifications

Who qualifies

What the law says

A single declarer

An AGI of $ 75,000 or less to be entitled to the full amount

Head of household

An AGI of $ 112,500 or less to be entitled to the full amount

Joint deposit

An AGI of $ 150,000 or less to be eligible for the full amount

Child aged 5 and under

Credit of $ 3,600 each if parent / guardian meets above requirements

Child from 6 to 17 years old

Credit of $ 3,000 each if parent / guardian meets above requirements


Will have to file a 2020 tax return to get payment

Families with children ages 6 to 17 could receive up to $ 3,000 each

If you have dependents aged 6 or over, you will be eligible for a maximum of $ 3,000 per child over the next year, assuming you meet the income requirements (see table below). above). This includes your 17-year-old dependents – originally parents could only claim up to $ 2,000 for each dependent 16 and under.

You can also get money for your older children, although it is not that much. You can claim up to $ 500 for an 18-year-old, as well as full-time students aged 19 to 24.

This is what parents who share custody of an eligible dependent should know.

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People earning $ 75,000 or less may be eligible for the full amount

As long as your adjusted gross income, or AGI, is $ 75,000 or less, single parents will be entitled to the full amount of the child tax credit. After $ 75,000, the amount begins to disappear.

According to Joanna Powell, CEO of CBIZ, the credit gradually decreases by $ 50 for every $ 1,000 of income above the threshold amounts for all filers. At $ 240,000, you will phase out all payment.

Heads of household with an AGI of $ 112,500 could be entitled to the full amount

As the head of household, your AGI will need to be $ 112,500 or less to be eligible for the full amount of the child tax credit. The amount you could get starts to disappear if your income is over $ 112,500 and over $ 240,000 you phase out the tax credit.

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Married couples jointly filing with adjusted gross income of less than $ 150,000 may be eligible for partial payment.

If you are married and are filing a return jointly with your spouse, your AGI must be $ 150,000 or less to be eligible for the full amount of the child tax credit. At $ 440,000, you are completely eliminating the payments.

How the 2021 child tax credit works for those who typically don’t file their income tax returns

Even if you don’t usually declare taxes – you are considered a non-depositor – you will need to file a return to be eligible for the 2021 child tax credit. IRS Commissioner Charles Rettig said payments will be automatic for those who file their 2020 tax return by May 17 , so if you don’t have your tax return submitted by that date, the IRS won’t be able to send you a payment.

The IRS will open two separate online portals. You will use one if you don’t traditionally file your income taxes.

It is also important to file a return if you have acquired any new dependents since your last return. This way you can get the full amount of the child tax credit owed to you.

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Other requirements for enhanced child tax credit payments

  • The child you are claiming must live with you for at least six months a year.
  • You and your child must be U.S. citizens, unlike mixed-status households.
  • For married couples filing jointly, at least one spouse must have a Social Security number or ITIN, Powell said.
  • The child must also have a social security number – a child with only an ATIN will not be eligible. (This includes adopted children.)
  • Parents who share custody of a child cannot both benefit from the tax credit.

Important: The results here are based on our current knowledge of the law, but should be viewed as general estimates only. Consult a financial planner for a more personalized estimate.

For more information, here is what you need to know about the 2021 child tax credit and when your payments start to arrive.

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