There are plenty of details about the child tax payments this year, and more to come.
Sarah Tew/CNETIf you're eligible for the advance child tax credit and have qualifying dependents, you can expect to get your first payment this summer. The IRS hasn't said exactly when it'll send the payments, but we do know it'll happen in July. The agency also hasn't said whether you will have time to update your income or number of dependents using a projected online portal prior to receiving the first payment.
Use CNET's child tax credit calculator to see how much money your family can expect to get. We'll tell you about eligibility requirements, how to opt out of monthly payments (if you want just one lump sum) and how your adjusted gross income factors into the equation. If you have shared custody of a child or if you're the parents of babies born in 2021, you'll need to be informed of certain rules.
We've also got 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 should I expect the first child tax credit payment?
The IRS said the first child tax credit payments will begin arriving in July, but the agency hasn't announced a specific start date yet. We don't know if the payments will be released in batches for different groups like how the stimulus check money is divvied up, or all at once for everyone who qualifies. We also don't know if they'll come earlier in the month, say the first day, or later -- for example, July 15.
What we do know is that the checks are on track to arrive monthly through December. Here's a breakdown of what to expect. We'll update this chart when we learn more about the payment delivery dates.
Timeline for the child tax credit payments
| Monthly | Payment ages 5 and younger | Payment ages 6 to 17 |
|---|---|---|
| July 2021: First payment of the year | $300 | $250 |
| August 2021 | $300 | $250 |
| September 2021 | $300 | $250 |
| October 2021 | $300 | $250 |
| November 2021 | $300 | $250 |
| December 2021: Last payment of the year | $300 | $250 |
| April 2022: Second half of payment | $1,800 | $1,500 |
What happens if I miss the May 17 Tax Day deadline?
Payments will be automatic for those who file their 2020 tax returns by May 17, 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 qualifications and income requirements 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.
How will I receive advance child tax credit payments this year?
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.
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.
Paper checks and EIP debit cards are 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.
What happens after the 2021 checks 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.
What is the IRS child tax credit portal for?
The IRS plans to launch an online portal by July 1, but the IRS won't have the resources to build this until after tax filing season ends. 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.
If I get more child tax credit money from the IRS than I should, will I have to send it 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 be eligible for the child tax credit?
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 deal for kids between ages 18 through 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 have shared custody, can I still get a 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 advance child tax credit different this year?
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 the monthly 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 should 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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