July child tax credit payment: Did you get less than expected? See how much you qualify for

July child tax credit payment: Did you get less than expected? See how much you qualify for

If you thought your child tax credit check would be more than it was last week, use our calculator to compare the numbers.

Last week, 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 did you get less money than you expected with the first payment?

You can find out how much money you should get by answering a few quick questions with our child tax credit calculator below. We’ll explain how it works and what’s used to determine your family’s amount. The payments you get this year are based on the latest tax return processed — so it could be 2019 or 2020. If a family has different circumstances in 2021, like income or kids, the payments could turn out to be too much or too little.

Remember for 2021, the IRS is sending half of each family’s total estimated credits in six monthly installments that began on July 15. The remaining half of the credit will be calculated as part of your 2022 tax refund. We’ll tell you what to do if you prefer to decline the monthly payments this year and get your full credit next year. We can also tell you how to sign up with the IRS to manage your payments and what to expect during tax season next year. This story gets regular updates.

Calculate your family’s estimated child tax credit total

Start here 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.

The child tax credit math is somewhat involved this time around. Let’s say the above calculator says that you will receive $3,500 in monthly payments from July through December 2021. That means you should take that total and divide by six to see how much the IRS will send you each month in advance this year.

Here are the basic rules. For parents of eligible children up to age 5, the IRS will pay up to $3,600 for each kid, half as six advance monthly payments and half as a 2021 tax credit. For each child aged 6 through 17, the IRS will pay up to $3,000, divided in the same way this year and next. For dependents aged 18 or full-time college students up through age 24, the IRS will make a one-time payment of $500 in 2022.

If your AGI is $75,000 or less as a single filer, $112,500 or less as a head of household, or $150,000 or less filing jointly, you’ll get the maximum amount. If your income is above the threshold for your filing status, your child tax credit payments will begin to phase out by $50 for every $1,000 of income over it. If the calculator above gives you a figure much less than $3,600 total for your 3-year-old, that probably means your household income is too high for the full payment.   ReadMore


Source : cnet