$300 monthly child tax credit payments: July start date, overpayment and all the details

If you thought stimulus check details were complicated, wait until you read the fine print of the expanded child tax credit for 2021. Most families that qualify for the $500, $3,000 or $3,600 per child receive a total of seven payments in the next year, starting with the first check in July. But there are a lot of sticky rules to know.

For example, you’ll only get half your payment in 2021. The rest will come after you file a tax return in 2022. It isn’t enough that adults have to meet certain adjusted gross income restrictions, either: Your dependents have eligibility requirements, too. There are things to know about older kids, 2021 babies and payments if you share custody with your child’s other parent.

We’ll also tell you how the child tax credit payment schedule will work, what you’ll need to do if you get too much money and how to correct errors using the IRS portal. If you’re still waiting for your $1,400 stimulus check to arrive, you can track your payment here. We also recommend taking two minutes to see if your state owes you money. This story has been updated.

Basic child tax credit rules and income limits

Payments will be split, with half in 2021 and the rest in 2022. For each qualifying child age 5 and younger, that means up to $1,800 will come in $300 monthly payments this year. For each child between the ages of 6 and 17, up to $1,500 will come as $250 monthly payments six times in 2021. For both age groups, the rest of the payment with come with your 2021 tax refund, when you claim the remainder of the tax credit in 2022. Here’s how to calculate your family’s total child tax credit amount, including a monthly breakdown.

Qualifying dependents between ages 18 and 24 count toward a one-time $500 payment.

Note that the amount you’ll get phased out for people with higher incomes. Singles earning more than $75,000 per year, heads of household earning more than $112,500 per year and married couples earning more than $150,000 a year. Your child tax credit 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.

Here’s more on the financial breakdown for qualified dependents. Remember, CNET’s child tax credit calculator will help pinpoint how much to expect each month…Read more>>

Source:-cnet