As the IRS continues sending out the stimulus checks, you have something else to look forward to this summer. The new stimulus bill not only includes $1,400 checks for eligible people but also expands the child tax credit for eligible families, bringing you as much as $3,600 per qualified child.
Calculating how much money you should expect, however, is complicated. The final sum factors in how many children you have and their ages, with different sums going to different age groups. Your family total will also phase out the higher your yearly income (aka AGI). Your CTC payment will also be split up between several deliveries in 2021 and the rest in 2022 — our calculator below will tell you how much to expect each year. We’ll also explain what happens if your child reaches one of the age cutoffs between 2021 and 2022.
The 2021 portion of the new CTC payments are expected to start arriving in July on a periodic basis and last through Dec. 31, but a specific date hasn’t yet been established. We’ll tell you what you need to know right now. While you’re here, here are nine unusual stimulus check facts, what we know about a fourth stimulus check and how to track down your third payment.
Calculate how much money you could get from the 2021 child tax credit
Under the new bill, child tax credit payments for 2021 have significantly increased from a maximum of $2,000 per child under the age of 17 to up to $3,600 per child aged 5 and under, and $3,000 for kids between the ages of 6 and 17. If you have a dependent who is 18 years old, you can get a $500 total payment for them — this also includes dependents aged 19-24 who are currently full-time college students.
Your income matters, too. If your adjusted gross income, or AGI, is equal to or less than $75,000 (as a single filer), $112,500 (as a head of household) or $150,000 (filing jointly), you’ll receive the full amount. If your income is higher than that amount, your CTC payments will begin to phase out by $50 for every $1,000 of income over those threshold amounts, according to Joanna Powell, managing director and certified financial planner at CBIZ.
Note that the output of the calculator below should be used as an estimate only — the IRS will determine the final amount. Also, it does not store any data you input.
Important: The results here are based on our current knowledge of the law, but should be treated as broad estimates only. Consult a financial planner for a more personalized estimate…Read more>>