$3000/$3600 Child Tax Credit 2021: How to calculate how much money will I receive
The first payment of the Child Tax Credit, worth $250 and $300 will hit bank accounts on 15 July, we took a look at how to calculate your payment.
Since the passage of the American Rescue Plan in March, parents, and guardians have patiently waited for the first payment of the revamped Child Tax Credit. Rather than being a non-fundable credit for those making a certain income, the credit is now fully refundable and worth $3,000 for children between the ages of six and seventeen, and $3,600 for those younger.
President Biden is pushing Congress to make these changes permanent as it could cut rates of child poverty in half.
Before the changes made under the trillion-dollar stimulus legislation, the credit would be sent with a taxpayer’s refund and was only available with those with an income over $2,000.
Now, the payments will be made on a monthly basis between July and December.
Child Tax Credit Payment Schedule
- Thursday July 15
- Friday August 13
- Wednesday September 15
- Friday October 15
- Monday November 15
- Wednesday December 15
Monthly payments will be made starting on 15 July and can be expected on or around the 15th of each month through December. The remaining balance of the credit -- half -- will be claimed when families file their taxes next year.
For those who would like to opt-out of the monthly payments and receive the credit as a bulk sum during tax season, the IRS’ Child Tax Credit Update Portal can be used.
How to calculate your payment
Each month a certain dollar figure will be distributed to families for each child of a certain age. For children younger than six, $300 per child will be sent, and for those between six and seventeen, $250 per child will be sent.
Consider a family that has four children ages, two, four, seven, and ten. The family can expect $600 for the children under six, and $500 for the seven and ten-year-old; bringing the total value of the monthly payment to $1,100.
Who is eligible?
Eligibility for the credit is based on income. Those with the following annual gross incomes are eligible to receive the full value of the credit,
- Married and filing jointly OR filing as a widow or widower with an annual gross income less or equal to $150,000
- Head of Household filer making less or equal to $112,500 a year
- Single filer making less or equal to $75,000 a year.
After these income limits have been reached families may receive some part of the credit but the amount will decrease as the income level increases. If these income requirements are met the IRS will “automatically enroll you for advance payments. You do not need to take any additional action to get advance payments.” If you are interested in checking if you are eligible and the quantity that will be distributed, taxpayers can use the Child Tax Credit Eligibility Assistant. This portal is now available in English and Spanish.