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$ 3,600 Child Discount: What You Need to Know About Payment Terms, Overpayments, More


Details of the child discount payouts are still unknown, but they are expected to start in July. This is what we now know.

Sarah Tew / CNET

The Child discount 2021 will bring a lot of money to families with children of all ages, even up to 24 years old. The ins and outs of the CTC payments – inclusive which families are eligible and which dependent children count for how much money – are perhaps even more complex than those of the stimulus controls will now turn offWhile the third stimulus check each counts qualified adult and dependent in front of $ 1400the CTC 2021 has a sliding scale for parents (the higher the AGI, the less you get per child) and different maximum amounts per child.

The payment schedule is also hard to pin down, at least from what we know about it so far. Some details are in the wording of the $ 1.9 Trillion Incentive Bill from March, even when advance payments can start and end. And did you also know that your CTC money will be divided between 2021 and 2022? Other details must be set by the IRS and may not be available until after the new tax deadline of May 17

We’ll share what we now know about the child discount check delivery schedule, including how often the payment could be made, what you need to know about overpayments, how to correct any errors, and what happened to your CTC payment if you share custodyIf you waiting for your check for $ 1,400, you can follow your payment hereBe here 9 Unusual Facts About Stimulus Control, and here’s the status of a potential fourth stimulus controlThis story was recently updated.

Important fact: the child discount is split between 2021 and 2022

The first thing to know is that you are not getting your CTC payments all at once this year. As with your taxes, the child rebate under the Incentive Act is for 2021. The “credit” portion means that the amount you owe in your taxes will be reduced by the “credit” you get from your eligible family members . That could either lower your payment to the IRS for your 2021 taxes (filed in 2022) or your tax refund for 2021Normally, you would receive that “credit” as a tax refund in 2022. But the plan is to get you money sooner, which is why the checks will start out as “advance payments” in 2021.

This logic also explains why your 2021 child discount is split into two parts. The first part, in 2021, is the advance that you can use immediately. The second part applies to your 2021 taxes – which were filed in 2022. Yes, it’s confusing. Hopefully, we’ll answer some of your questions below.

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What Parents Who Share Custody Should Know

For the first two stimulus controls, some parents do that shared custody of a child but were not 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. For example, one parent claimed the child’s taxes in odd years, and the other claimed the child’s tax in the even years.

This is no longer allowed on the third check, and we are told it will not be part of the CTC payments either. Here’s what we know about the child tax credit and shared custody situations

How the child discount could be paid out this year

As a refresher, the amount you receive is half of what you owe for the year below new incentive account, and you will receive the other half of the payment with your 2021 tax refund, filed in 2022.

When paid out monthly, payments are up to $ 300 per month for each eligible child aged 5 and under, and up to $ 250 per month for each child between the ages of 6 and 17. Note that this amount is gradually disappearing for those with higher incomes – for single people who earn more than $ 75,000 per year, householders who earn more than $ 112,500 per year, and married couples who earn more than $ 150,000 per year.

So if you qualify for $ 3,000 and you have one dependent, you will get an estimated $ 250 a month from July through December, for a total of $ 1,500. You must then claim the remainder of your child tax credit when you file your taxes for 2021 next year (2022). Here’s more about the financial breakdown for qualified dependents

Child discount amount 2021

Age Amount you could get per child

Age 5 and under

Up to $ 3,600, or $ 300 per month with monthly payouts

Ages 6-17

Up to $ 3,000, or $ 250 per month with monthly payouts

When would the first CTC checks arrive?

We have a general timeline, but the details are not yet pinned down. The American rescue plan stipulates that CTC payments will start arriving in July, but a specific date has not been released. The IRS will make additional information about the expanded child discount available “as soon as possible,” the agency said in a statement on March 12.

What else do we know about the child discount delivery schedule?

According to the text of the incentive law, the child discount is paid “periodically” from July to December. However, the IRS has not shared how often it can get the checks.

Monthly delivery was a goal and was in the original language used in previous versions of the incentive law. But the language changed to “periodic,” perhaps in part because of the added burden placed on the IRS to also distribute tax returns and incentive checks. In other words, some may have found a monthly delivery cycle too ambitious or unrealistic.

“Getting straight into the month could be challenging,” said IRS Commissioner Charles Rettig when asked about the timeline.

How would the IRS send your CTC money: direct deposit, mail, some other way?

The way your CTC money comes in may well depend on how you receive your stimulus check money, Joanna Powell, general manager and certified financial planner at CBIZ, told CNET. The IRS has changed this in the past, so we need official guidance from the agency.

For example, if you have all three stimulus controls through direct deposit on your bank account, it is quite possible that your child discount will also come up like this. When you receive Social security benefits such as SSI or SSDI, you may receive your payment on a Direct Express card. Veterans who don’t normally pay taxes can also have different delivery method.

Paper checks and EIP debit cards are other delivery methods used for stimulus controls. We’ll keep our ear to new details and will provide updates as we learn more.

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How filing your 2020 taxes can affect the total of your child tax credit

Taxpayers may not submit an amended declaration related to the new legislation and should not take other “unnecessary steps,” the IRS said. 12 March. Rettig said payments will be automatic for those who do submit their 2020 tax returns before May 17, the new tax term.

However, non-affiliates must file a 2020 tax return to get the credit, even if they don’t usually file a tax return. This tells the IRS how many dependents there are in the household that count toward the CTC benefits.

An IRS portal is coming in July. Here’s what that means for CTC receivers

The IRS will launch an online portal by July 1, Rettig said, but the IRS just has the resources to build this after the end of the tax reporting seasonOnce the CTC Portal is available, recipients can log in to update their details if their circumstances have changed. For example, if you have a child in 2021, the IRS doesn’t have that information on file yet, so updating that data can help you get a bigger payout on the tax credit.


It is unclear whether the payments will be final.

Sarah Tew / CNET

Should you return money to the IRS if you get more than you should?

Yes. The CTC is not as flexible as the stimulus check rulesIf you receive more money than you should have, you have to pay it back. An example of this is if you and your child’s other parent (who is not your spouse) are both paid the child discount for the same dependent

When you file your tax return for 2021 (in 2022), if your tax position is not what the IRS has in its system and you were not entitled to as much as you received, you must repay the overpaid. To avoid this tax inconvenience, make sure all of your information is up to date before payments come in. Powell estimates the portal will be open ahead of time so you can make any necessary adjustments.

Can you opt for the entire CTC bundle at once instead of several smaller checks?

Yes, but not this year. If you thought you could cash out all of the CTC money in July, you don’t. Instead, you can choose not to receive the periodic prepayments and receive a fixed amount as credit in the spring of 2022 when you file your tax return. That means you get a larger total in tax refunds or you owe the IRS less money because the credit is deducted from your total.

You can use the online portal to unsubscribe. Again, you wouldn’t receive any money until 2022.

What happens after the 2021 CTC prepayments expire in December?

The last advance of the child discount ends on December 31, 2021 and the rest will come with the tax season in 2022. But Biden wants to make the higher payments permanent, White House press secretary Jen Psaki said on March 16, “We have those discussions with Congress.”

For more information, here are the Most Important Things to Know About the $ 3,600 Child Discount for 2021Plus, here it is how to track your tax refund and how to track your $ 1,400 stimulus check

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