Calculate how much money you could get from the 2021 child tax credit.
Sarah Tew/CNETA total of seven checks could be coming your way starting in July as part of the child tax credit for 2021. The payments will continue arriving over the next 12 or so months unless you opt out of monthly payments -- if you do this, you'll get one big check in 2022. You'll get more money per dependent with the newly revised credit -- but the split payment schedule and qualification rules are confusing. For example, if your adjusted gross income for 2021 is above a certain amount, you could get less money.
Estimate how much you could get with each payment by using CNET's child tax credit calculator. Below, we'll explain what happens if your child ages out of a payment bracket. There are also rules that parents who share custody of a kid should know, and additional facts for parents of 2021 babies. You shouldn't need to file an amended tax form if you already submitted your taxes (how to track if the IRS processed them).
Once the IRS slows down sending stimulus checks, including "plus-up payments," more child tax credit payment details can be expected. After calculating your estimated child tax credit, keep reading for more payment details. Then, see if your state owes you money and new rules to save on COBRA, FSA and insurance costs. Here's what we know about a fourth check, President Joe Biden's next relief package bill and student loan forgiveness. This story was recently updated.
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2021 child tax credit calculator: Estimate how much money you'll get
The new child tax credit raises the 2020 limits from up to $2,000 per child to a maximum of $3,600 -- but the situation gets complicated fast. Qualified children aged 5 and under count for $3,600. Kids between 6 and 17 years old count for $3,000 maximum per child; 18-year-olds and full-time college students 24 and under can bring parents a one-time $500 payment.
Enter your details below, including your adjusted gross income, or AGI, to see your payment breakdown. This calculator does not store or use your data. The results are based on our current knowledge of the law and should be treated as broad estimates only (the IRS will determine the final amount). We suggest consulting a financial professional for a more personalized estimate.
Child tax credit calculator for 2021
Use details from your 2019 or 2020 tax return.
1. Choose your filing status below.
Note: If your AGI is less than or equal to $75,000 as a single filer, $112,500 as a head of household or $150,000 filing jointly, you'll receive the full amount. For incomes higher than $150,000, your child tax credit payments will begin to phase out by $50 for every $1,000 of income over the threshold.
Parents can opt out of getting monthly payments this year
If you'd rather receive your 2021 child tax credit money as one large payment, you'll be able to opt out of monthly payments once the IRS opens the online portal to help you make that decision and input other information, like if your AGI or other changed circumstances. The IRS is expected to open its child tax credit website by July 1.
Opting out would mean that instead of receiving a $300 per month for your 3-year-old, and the remainder of your money in 2022 for example, you can wait until you file your taxes next year to claim the full $3,600 amount.
What happens if your dependent ages out of one of the payment brackets?
If you have a 5-year-old turning 6 by the end of the year, the total payment amount you could get for that child is $3,000. If you have a 17-year-old who turns 18 before the end of the year, you would receive $500 total for that dependent instead of $3,000.
Here's more information about qualifications your child must meet for you to receive advance payments. Also, if you have a dependent who is a full-time college student and turns 25 this year, you won't receive any payment for them.
If you had a baby any time in 2021, you'll be able to claim up to $3,600 for your new addition.
Sarah Tew/CNETChild tax credit details for parents of 2021 babies
Children born in 2021 make you eligible to receive the 2021 tax credit for $3,600 per child (that's up to $7,200 for twins). That's on top of payments for any other qualified child dependents you claim. Here's our guide for parents of 2021 babies, including what parents of adopted infants should know.
Key overpayment and income details you'll want to know
Your family's eligibility is determined in large part by your adjusted gross income. So what happens if you get a new job or start making more money in 2021? What happens if the payments have already gone out and you spent the money?
The IRS has a plan for this, a child tax credit portal the agency will make available by July 1 so you can update your information. If you need to make an adjustment, it will lower the payment amounts you'd receive if your new income reaches the phaseout level, according to Garrett Watson, a senior policy analyst at Tax Foundation.
If you wait until 2022 to update your information when you file your taxes and you continue to receive the full amount based on your lower income, you would either have to return the excess money on your 2021 tax return next spring, according to Watson, accept a smaller 2021 refund or owe more in taxes.
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Your 2020 tax return could affect your child tax credit amount. Here's how
You need to file your 2020 taxes to get the credit if you're a nonfiler. The IRS will automatically make the payments for those who have their taxes filed by the May 17 tax due date, the IRS Commissioner Charles Rettig said. So if you don't have your tax return submitted by this time, the IRS won't know to send you a payment. Also, if you plan to file a tax extension, you'll likely be able to use the IRS portal, where you can update your information in case you've gained dependents since the last tax filing.
More qualifications your dependents need to meet
There are some specific rules regarding qualifications not just for parents and caregivers, but for the children, too. Here's what to know about dependent qualifications for the child tax credit.
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