August child tax credit: Here’s how to get the right payment amount

August child tax credit: Here’s how to get the right payment amount

Was July’s child tax credit payment less than you expected? Use our calculator to compare the numbers before next month’s check.

This month, millions of child tax credit payments were sent out to eligible families through direct deposit and mail. If you qualify, you’ll continue receiving payments for up to $300 for each kid under 6 years old and $250 for each kid between ages 6 and 17 through December. But what if you got less money than you expected with that first advance monthly check? You can find out how much money you’re owed by answering a few quick questions with our calculator below.

Remember that the IRS is sending half of each family’s total estimated credits in six monthly prepayments this year. (The remaining half of the credit will be calculated as part of your 2022 tax refund.) Those prepayments are based on the latest tax return processed, either from 2019 or 2020. So, if your family has different circumstances in 2021, like a change in income or number of qualifying dependents, the payments could turn out to be too much or too little for the August check as well.

Your payments could also be smaller based on some complications with the eligibility rules this year or due to an IRS mistake. Families that don’t need the cash upfront could also choose to opt out of the monthly payments and receive the credit as a lump sum applied to next year’s taxes. Opting out could be one way to avoid problems with inaccurate payment amounts. We’ll tell you how to sign up with the IRS to opt out and what to expect during tax season next year. This story gets updated frequently.

Calculate your family’s estimated child tax credit here

Start by entering your adjusted gross income and number of kids. (Our calculator will not store or use your data.) The results are based on our current knowledge of the law and should be treated only as broad estimates; the IRS will determine the final amount. We suggest consulting a financial professional if you want a more personalized estimate.    ReadMore


Source : cnet