There are plenty of details about the child tax payments this year, and more to come.
Sarah Tew/CNETThe first advance child tax credit check for up to $3,600 total per kid will go out July 15, the IRS announced Monday. Roughly 39 million households will receive the payments, the agency said. Payments will continue arriving on the 15th of each month for those who are eligible with qualifying dependents -- unless the payment date falls on a holiday or weekend. The IRS hasn't yet said when the online portals -- there will be two -- will officially open for those needing to update their information.
While you wait for the payment to arrive, you can use CNET's child tax credit calculator to see how much your family will get in July and in total. We'll explain what the eligibility requirements are, how to opt out of monthly payments for one lump sum and how your adjusted gross income is important. If you have shared custody of a child or if you're the parents of babies born in 2021, there are rules you'll need to know.
We'll also provide you with some ways to use your child tax credit money when it arrives and tell you how to claim up to $16,000 in child care expenses. If your $1,400 stimulus check or plus-up payment hasn't arrived, you can track your check and report a problem. We recommend seeing if your state owes you money and if you qualify for getting up to $50,000 back in 2021. Also, here's the latest on a fourth stimulus check and more about how the next stimulus plan could bring you money. This story was updated recently.
When will I get the first child tax credit check and the last?
The IRS said the first child tax credit payments will begin arriving July 15 to all eligible households. The first six payments will arrive monthly at the same time; for example, the third payment would be made Sept. 15. However, if the payment date falls on a holiday or weekend -- Aug. 15 is a Sunday -- it's likely the payment will go out the following Monday. The checks will end in December with the rest coming next year. Here's a breakdown of what to expect.
Timeline for the child tax credit payments
| Monthly | Payment ages 5 and younger | Payment ages 6 to 17 |
|---|---|---|
| July 15, 2021: First payment of the year | $300 | $250 |
| Aug. 16, 2021 | $300 | $250 |
| Sept. 15, 2021 | $300 | $250 |
| Oct. 15, 2021 | $300 | $250 |
| Nov. 15, 2021 | $300 | $250 |
| Dec. 15, 2021: Last payment of the year | $300 | $250 |
| April 2022: Second half of payment | $1,800 | $1,500 |
How will I use the IRS child tax credit portals?
The IRS plans to launch two online portals by July 1. According to the Washington Post, one portal will be for those who are not normally required to file an income tax return and will let these non-filers provide information so they can receive payments. The second portal will allow families to update their information if their circumstances have changed. For example, if you get a new child in 2021 who is not reflected on your 2020 tax return. You will also be able to use the portal to opt out of the monthly payments and receive the entire amount at one time when you file your taxes in 2022.
How will the IRS send child tax credit payments when they start in July?
The way your child tax credit money arrives could very well depend on how you receive your stimulus check money, Powell told CNET. The IRS has changed this in the past, so we'll need to hear official guidance from the agency.
The Washington Post reported that the IRS will send the payments through direct deposit, as paper checks and on debit cards, with 80 percent getting their monthly payments via direct deposit. We asked the IRS for clarification for how will receive money on debit cards.
For example, if you got all three stimulus checks by direct deposit, it's quite possible your child tax credit could arrive that way, too. If you receive Social Security benefits like SSI or SSDI, it's possible you might get your payment on a Direct Express card. Veterans who don't normally pay taxes might also have a different delivery method.
What happens if I miss the May 17 tax return due date today?
Payments will be automatic for those who file their 2020 tax returns by May 17, today, which is this year's tax deadline. Nonfilers will need to file a 2020 tax return 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.
Taxpayers shouldn't file an amended return related to the new legislation and shouldn't take any other "unnecessary steps," the IRS said March 12.
If you don't make the May 17 deadline, your monthly payments may be different than what you qualify for, based on your situation this year. The IRS said you'll be able to update your income and dependent status so the agency is using your most recent info when calculating payments. The agency didn't offer details on when or how you'll be able to do that. We've reached out to the IRS for clarification.
Watch this: Child tax credit: How much are you getting?
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What are the qualification details and income rules for the child tax credit 2021?
You may be confused about how your payments will be divided between 2021 and 2022. For each qualifying child age 5 and younger, up to $1,800 will come in six $300 monthly payments this year. For each child between the ages of 6 and 17, up to $1,500 will come as $250 monthly payments six times in 2021. For both age groups, the rest of the payment will come with your 2021 tax refund, when you claim the remainder of the tax credit in 2022. Here's how to calculate your family's total child tax credit amount, including a monthly breakdown.
Qualifying dependents between ages 18 and 24 count toward a one-time $500 payment.
2021 child tax credit maximum payments
| Ages 5 and younger | Up to $3,600, with half as $300 monthly payments |
|---|---|
| Ages 6 to 17 | Up to $3,000, with half as $250 monthly payments |
| Age 18 | $500 one-time check |
| Ages 19 and 24, full-time college students | $500 one-time check |
Note that the amount you'll get will phase out for people with higher incomes: singles 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.
Here's more on the financial breakdown for qualified dependents. Remember, CNET's child tax credit calculator will help you pinpoint how much to expect each month.
What happens when the 2021 checks come to an end in December?
The final advance payment of the child tax credit is scheduled to go out by Dec. 31, with the rest coming in 2022 with tax season. But President Joe Biden stated that the higher payments may last until at least 2025. He presented his American Families Plan proposal to extend the payments stating in an April 28 speech: "Together, let's extend the Child Tax Credit at least through the end of 2025." It's up to Congress to approve his request.
If I get more child tax credit money from the IRS than I should, will I have to send the extra amount back?
Yes. The child tax credit isn't as flexible as the stimulus check rules. 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 both paid for the child tax credit for the same dependent.
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. The portal will open by July 1 for you to make adjustments.
If I have a new baby or adopt in 2021, will I qualify for any child tax credit money?
If you have a baby in 2021, your newborn will count toward the child tax credit payment of $3,600, if you and they qualify. Children who are adopted can also qualify if they're US citizens.
What's the situation for kids between ages 18 and 24?
If your older dependents are 18 years old, they can qualify for $500 each. So can dependents between the ages of 19 and 24, but they must be enrolled in college full-time in order to qualify.
Babies born in 2021 will count toward a $3,600 check. That's good news for new parents.
Sarah Tew/CNETIf I share custody, can I still get a child tax credit check?
For the first two stimulus checks, some parents who shared custody of a child but 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 child tax credit and shared custody situations.
How is the revised child tax credit different from previous years?
The first thing to know is you won't get your child tax credit payments all at once in 2021. The "credit" part means the amount you owe in your 2021 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 tax refund for 2021. 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 you file in 2022.
How can I opt out of receiving the monthly child tax credit payments?
You aren't obligated to receive child tax credit payments monthly this year. Instead, you can choose to get one payment in 2022. (The upcoming IRS portal will let you opt out of the monthly payments.) You may want to opt out, for example, if you'd rather have one large payment next year or if you're concerned the IRS might overpay you this year and you don't want to pay back money next year. 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.
For more information, here are the top things to know about the $3,600 child tax credit. Plus, here's how to track your tax refund and how to track your stimulus check.
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