Fast Facts for May 17, 2021
If you have a child under the age of 18 –chances are — this summer, you’re going to get a couple hundred bucks a month from the federal government.
The IRS just announced the *new* fully refundable monthly child tax credit benefit will start going out to eligible parents on July 15th. And will continue monthly through December.
So, how do I know how much I’ll get for my qualifying kid? Pay attention. This is where you need to pay attention, I’m about to answer all of your most popular questions. So watch till the end.
To qualify for this new increased amount of child tax credit — either $3600 or $3000 – you must have two things — your child must be a certain age and you must meet the financial requirements.
You financially qualify for the *new* full child tax credit if:
You file taxes single and make less than $75,000 a year
You file head of household and make less than $112,500 a year
Or you file married and make less than $150,000 a year.
Your child will be qualified for the $3600 child tax credit if:
That child is aged zero to five and has not attained the age of six by the end of 2021. If your child turns six years old in 2021 that child will not qualify for $3600.
Your child will be qualified for the $3000 child tax credit if:
That child is aged six to 17 and has not attained the age of 18 by the end of 2021. If your child turns 18 in 2021 that child will not qualify for the $3000.
If you financially qualify and the child is:
Aged zero to 5 you’ll get up to 3-hundred dollars a month from July 15 to December 15
Or aged six to 17 you’ll get up to $250 a month from July 15 to December 15
That amount represents half of the child tax credit that you will receive up front. If you take the monthly option, you will be able to claim the other 50% of the credit on your 2021 taxes. Keep in mind, this monthly credit may impact your 2021 tax refund so speak to your tax preparer.
You will be able to opt out of the monthly child tax credit if you would prefer to take the full tax credit on your 2021 taxes. That information is coming soon.
For more information you can check out irs.gov/childtaxcredit2021
