Child tax credit 2021: New monthly payment timeline, overpayments, more

If you qualify for the revised child tax credit payments, you’ll start receiving half the money this summer and the other half in 2022. Here’s what else you may not know about CTC checks.

If you qualify for the expanded child tax credit, your family will begin receiving payments starting in the second half of this year, and you’ll receive the rest of the money in 2022. IRS Commissioner Charles Rettig confirmed the payments will be monthly starting in July.

Your dependents must meet the requirements for you to receive up to $3,000 for older kids and $3,600 for younger ones. The IRS will likely give more details about the child tax credit payments, but we already know the broad outlines, including who qualifies for the payments and how much they could receive.

We’ve provided the details about the child tax credit delivery schedule below, including how often payments could come, what to know about an overpayment, how to correct any errors and what happens to your CTC payment if you share custody of one or more children. If you’re waiting for your $1,400 check to arrive, you can track your payment here. Here are nine unusual stimulus check facts and what the story is now with student loan debt forgiveness. This story was recently updated.

Is there an official date for when the first child tax credit payment will be delivered?

We know the month it will arrive, but a specific date hasn’t been released. The IRS will make additional information about the expanded child tax credit available “as soon as possible,” the agency said in a statement March 12. See our chart below for the timeline.

Don’t forget: The child tax credit will be split between 2021 and 2022

The first thing to know is you won’t get your child tax credit payments all at once this year. As with your taxes, the child tax credit in the stimulus bill is for 2021. The “credit” part means the amount you owe in your taxes will be reduced by the “credit” you gain from your eligible dependents. That could either reduce your payment to the IRS for your 2021 taxes (filed in 2022) or else increase your tax refund for 2021. Normally, you’d receive that “credit” as a tax refund in 2022. But the plan is to bring you money sooner, which is why the checks will start coming in 2021 as “advance payments.”

This logic also explains why your 2021 child tax credit is split into two parts. The first part, in 2021, is the advance payment you can start using right away. The second part will apply to your 2021 taxes — which are filed in 2022. Yes, it’s confusing. Hopefully, we answer some of your questions below.

Important details for parents who share custody

For the first two stimulus checks, some parents who shared custody of a child but weren’t married to each other were entitled to each claim money for the same child. That was only if they alternated years for claiming the dependent. In other words, if one parent claimed the child on their taxes in odd years and the other claimed the child on their taxes in even years.

This is no longer allowed for the third check, and we’re told it won’t be part of the child tax credit payments either. Here’s what we know so far about the child tax credit and shared custody situations. ReadMore

Source :  cnet