2021 child tax credit FAQ: Your payment questions, answered

2021 child tax credit FAQ: Your payment questions, answered

It’s official — early child tax credit payments are here. Last week, the IRS and the Department of the Treasury sent more than $15 billion to families that qualify for the expanded child tax credit, impacting nearly 60 million children. The majority of US households received their first monthly installment — up to $300 a month for each child under age 6, and up to $250 a month for each one ages 6 to 17 — through direct deposit. President Joe Biden praised the child tax credit as a historic effort “to make another giant step toward ending child poverty in America.”

If you got your first payment (or are waiting still waiting for it to arrive — it takes more time for paper checks to come by mail), you might still have questions about the money, including if you received the correct amount. We’ve been covering all the bases to help you figure out if you should opt out of the monthly payment program, how the credit will affect your 2022 taxes and how to manage your payments through the IRS portals.

Feeling stressed by child tax credit facts and figures? This FAQ should help. We’ve also compiled some information on how parents might want to use the money and how to claim up to $16,000 more for child care costs, much more than you could in previous years. This story is updated on a frequent basis.

What’s the 2021 child tax credit payment schedule?

The first thing to know is you won’t get your child tax credit payments all at once in 2021. Unless you tell the IRS you want to unenroll from the advance monthly payments, you’ll get six checks in 2021 and one in 2022. The second thing to know is that half of your total child tax credit payment will come this year through those monthly payments, with the other half coming in one lump sum as part of your tax refund in 2022.

So in other words, your largest payment arrives next year. Until then, you get six smaller payments this year to start using right away. The idea is to bring you money sooner to meet expenses like rent, food and daycare, which is why the checks come in 2021 as “advance payments.”  ReadMore

Source : cnet