The IRS is on track to send the newly enhanced 2021 child tax credit through monthly payments, a task it will begin organizing after sending more stimulus check “plus-up payments” and processing more 2020 tax returns. Luckily, you don’t have to wait until the checks start to arrive in July to estimate how much money you could get monthly with the new child tax credit. And since the stimulus law governing the qualifications for families and eligible children is so
In just a few months, the IRS will start sending out the expanded child tax credit payments to eligible families with qualifying dependents. If you qualify, you’ll start receiving monthly payments from July to December, per the IRS, and the rest of your money will come with your 2021 tax refund.
Payments will range between $500 and $3,600 for each dependent, depending on age (see below). And if you have
After weeks of waiting, we finally know the child tax credit payments will begin in July with “payments going out on a monthly basis,” IRS Commissioner Charles Rettig said Tuesday. If you’re eligible, half of your 2021 child tax credit will be sent out each month from July to December, with the other half arriving after you file your 2021 tax return. We took out all the guesswork for how much you can get by creating a calculator tool to help you estimate how
Figuring out how much you could expect from the third stimulus check is hard enough, with new income limits and more dependents counting toward the payment this time. (And plus-up payments, if you’re due more.) The new child tax credit is even more confusing, which will calculate the payments based on your income and the age of your kids and then dividing payments up over the second half of 2021 and into 2022.
But it’s worth getting your arms around, as the expanded
While the IRS continues to send out fresh batches of stimulus checks of up to $1,400 each, a perk in the new $1.9 trillion COVID relief bill is set to bring thousands of dollars to families with children. Along with savings for medical costs, and extra unemployment checks, households with dependent children can expect even more money from changes to the child tax credit. Over time, it could potentially bring in more than the stimulus checks, with CTC payments
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