Child tax credit: Everything we know
Child tax credit: Everything we know
4:17

Child tax credit: Everything we know

Money
Starting this summer, the US government is sending more money to families. The financial help is an expansion to the child tax credit and families can get up to $3,600 per kid. This 2021 child tax credit is part of the $1.9 trillion COVID relief bill in March, but the money Is different from the stimulus check payments. This is a separate thing which should roll out in July as a series of payments and the amount of money all depends on the age of the kids and how much income you reported making on your taxes. The child tax credit is not a new concept. Normally, parents filing their taxes could claim a credit of $2,000 for every child that's 16 and under, sometimes part of that can come as a tax refund when you file but under the new rules for 2021 The amount of credit has increased for many households. And those families don't have to wait until they file 2021 taxes half of the money owed is coming this year like an advanced payment. Here's the breakdown of who gets the benefits. If you are a single tax filer, you need to have an adjusted gross income of $75,000 or less To get the full child tax credit amount, heads of households need to have an adjusted gross income of $112,500 or less to qualify for the full amount. And married couples filing jointly, Have an income of $150,000 or less to qualify for the full amount, the age of each child matters. parents of children ages five and younger can get $3,600 per kid. That includes babies born this year. parents with children ages six to 17. They can qualify to receive up to three. $3,000 per kid, and you can get money for older kids too. For each 18 year old and full time college student between the ages of 19 and 24. Parents can get up to $500 there are some other stipulations the child you're claiming must live with you for at least part time. You and your child must be US citizens. And for married couples filing jointly, at least one spouse needs to have a social security number or Individual Taxpayer Identification Number, and the kid also needs a social security number. Some details are still being worked out on the delivery of the money. We don't yet know how frequently these child tax credit payments will be distributed to families. All we know is that they will be paid out periodically From July through December. The burden to figure it out falls on the IRS. We also don't know if the IRS will send out payments the same way it handled stimulus checks. The payments will be automatic for anyone who files Their 2020 tax returns by the new May 17 deadline and if you don't file your taxes normally, well you need to file your taxes if you want the credit so the IRS knows how many dependents are in the household. The IRS said is gonna have an online portal for all of this set up by July 1. So hopefully things will be more clear by then. And if you rather get your payment as one lump sum next year when you file your taxes, ideally you could use the portal to set that up. And there's something else to keep in mind. The IRS is basing all of these payments Have information from your latest tax return. So if the IRS starts paying you for the extra child tax credit, and it turns out you are not entitled to all the money you received, you will have to give the overpayment. Payment back. It is possible this financial boost may just be a 2021 thing. President Joe Biden's team said he wants to make the higher payment amounts permanent, but it would take Congress to make that a reality. Be sure to check back in with CNET, for the latest updates to make sure you don't miss out on your money.

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