Advance Child Tax Credit Payments Begin on July 15 but Do You Qualify?
If getting mail from the IRS makes your palms sweat and your stomach feel queasy, here's a heads up that if it hasn't yet, a letter from the IRS may be hitting your mailbox soon if you've got kids.
About 90 percent of households with children in the United States are about to see some extra money as part of the advance child tax credit.
The advance child tax credit was set in place as part of the same stimulus package that brought many people a third stimulus check. What this means is that if you have dependents who are 17 years old or younger, they count toward the child tax credit.
If you, as a single filer bring in an adjusted gross income of $75,000 or less, $112,500 if you file as head of household, or $150,000, or if you file jointly, you'll get the full amount of the child tax credit. If your income is more than listed, your payments will begin to phase out by $50 for every $1,000 you make over the income threshold.
If you have kids between the ages of six and 17, you may be eligible for up to $3,000 per child. If you have kids under the age of six you may be eligible for up to $3,600 per child.
The first payment will arrive on July 15 and it will be $300 per child from newborn to age five and $250 per child from 6 to 17. Future payments will be released on August 13, September 15, October 15, and December 14. Then, when you file your 2021 taxes next spring, you'll be paid out the remaining amount which would be $1,800 per child between the ages of newborn to five and $1,500 per child between the ages of six and 17.
The IRS recommends that anyone who has not filed their 2020 taxes do so as soon as possible, "so they can receive any advance payment they're eligible for." The IRS also says, 'Eligible taxpayers do not need to take any action now other than to file their 2020 tax return if they have not done so."
If you're not sure if you qualify for the child tax credit, CNet has three simple ways for you to find out.