Will you get the child tax credit payment in July? Income rules and more

Are you expecting to get a child tax credit payment on July 15? If so, we have good news: You’ll automatically receive the monthly payments throughout 2021. But with anything tax-related, the child tax credit rules are pretty complicated.

For instance, there are income requirements you must meet to get the payments — and your dependents have specific age requirements. The payments are for up to $300 a month per kid, or $3,600 total per kid over the course of this year and next. And, yes, that includes babies born in 2021. And because the monthly payments are optional, eligible recipients can choose to receive the entire lump sum when they file taxes in 2022.

The White House’s proposed American Families Plan could extend the new child tax credit in the future. We’ll keep you posted. In the meantime, did you know you could claim up to $16,000 in child care expenses next year? Here’s what’s happening with a potential fourth stimulus check, what to do if you haven’t received your third stimulus checkwhen it could come and how to track it. This story was updated recently.

$3,600 total for each child under age 6

If your dependents are below the age of 6, you can claim up to $3,600 per child as long as you meet the income requirements, which are listed below. That’s $1,600 more than the $2,000 that parents were able to claim on their 2020 tax returns.

This includes newborns, even if they’re born later in 2021. The parent filing will be able to update the IRS portal with their new dependent information to begin receiving the advance payments this year, said Garrett Watson, a senior policy analyst at Tax Foundation. Otherwise, parents can file a claim on their 2021 tax returns next year.

$3,000 for each kid between ages 6 and 17

If you have dependents who are age 6 or older, you’ll qualify for up to $3,000 per kid over the next year, assuming you meet the income requirements. (Refer to the chart above.) This includes your dependents who are 17 years old — originally, parents could only claim up to $2,000 for each dependent age 16 and younger…Read more>>


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