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Does your family qualify for the $3,600 child discount? Income rules and age requirements



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The increased payments will put more money in the bank of qualified households.

Sarah Tew/CNET

Mark 15 July in your calendar. Then eligible families automatically receive their first advance voor payment child discount, with monthly payments for half of the total amount throughout 2021. But, like all things tax-related, the rules for the child discount are somewhat complicated. We can help.

There are income thresholds to get the payments, and your dependents must reach a certain age requirements. The newly increased payments for 2021 are up to $300 per month per child, or $3,600 total per child during this and next year. That includes babies born in 2021. Another important thing to know: the advance payment monthly payments are optional, so that parents can choose to use the full lump sum when they file tax returns in 2022.

According to a White House fact sheet, the American Families Plan could extend the new tax credit for children in the future. We will keep you informed. This is what happens to a potential fourth stimulus check, what to do if you lose your . have not received? third stimulus check, when it could come and how to track it?. This story has been updated.

Families receive a total of $3,600 for each child under the age of 6 6

If your dependents are under 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 parents could claim on their 2020 tax returns.

This includes newborns, even if they are born later in 2021. Before next month, parents can update the IRS with their new dependent information in a online portal to receive the advances this year. Otherwise, parents can file a claim on their 2021 tax return next year.

Age scales for child tax discount 2021

5 years and younger

Up to $3,600 per child, with half of the credit as $300 monthly payments

Ages 6 to 17

Up to $3,000 per child, with half credit as $250 monthly payments

Age 18

One-time check for $500 in 2022

19 to 24 years, full-time students

One-time check for $500 in 2022

Families receive a total of $3,000 for each child between the ages of 6 and 17

If your dependents are 6 or older, you are eligible for up to $3,000 per child for the next year, assuming you meet the income requirements. This also applies to your dependents who are 17 years old. In previous years, parents could claim up to $2,000 for each dependent age 16 and under.

You can also get money for your older kids, although it’s not nearly as much. You can claim up to $500 for an 18-year-old, as well as for full-time students ages 19 to 24.

Individuals earning $75,000 or less (or couples earning $150,000 or less) get the full amount

As long as you adjusted gross income, or AGI, is $75,000 or less, single parents with a taxpayer are eligible for the full child tax credit. After $75,000, the amount begins to gradually decrease. At $240,000, the tax credit ends completely.

If you are married and filing with your spouse, your AGI must be $150,000 or less to qualify for the full child tax credit. At $440,000, couples will phase out the tax credit completely.

According to Joanna Powell, general manager at CBIZ, the credit is being phased out by $50 for every $1,000 in income above the thresholds for all applicants.

2021 Child Tax Credit Income Limits

Who is eligible?

What the law says

single filer

An AGI of $75,000 or less to qualify for the full amount

Head of the household

An AGI of $112,500 or less to qualify for the full amount

Couple filing jointly

An AGI of $150,000 or less to qualify for the full amount

non-filer

Must file 2020 tax return to receive payment de

Heads of household earning $112,500 or less are eligible for the total amount

As a householder, your AGI must be $112,500 or less to qualify for the full child tax credit. The amount you could get will begin to taper off gradually if your income exceeds that amount, and $240,000 will take you out of the tax credit.






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People who don’t normally file taxes may qualify, but…

Even if you don’t normally file a tax return — you are considered a non-filer — you must file to qualify for the 2021 child tax credit. Payments are made automatically for those who filed their 2020 tax returns before May 17, so if you haven’t filed your tax returns by then, the IRS won’t know that they should send you a payment.

The IRS opens on July 1 two separate online portals. One of the portals will be crucial for households that traditionally do not file income taxes so that they can register their information. Households that have gained new family members since filing taxes must update their information in the portal to ensure they get the amount they owe.

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Some eligible families may choose to receive the full $3,600 per child at once next year.

Sarah Tew/CNET

More Eligibility Rules to Receive the New Child Tax Credit Checks

  • The child you are claiming must live with you for at least six months of the year.
  • You and your child must be U.S. citizens, unlike mixed-status households.
  • For married couples applying jointly, at least one spouse must have a Social Security Number or an ITIN.
  • The child must also have a Social Security number – a child with only an ATIN is not eligible. (This also applies to adopted children.)
  • Parents sharing custody of a child cannot both get the tax credit.

Here’s what else you need to know about the 2021 child discount.

Important: The results here are based on our current knowledge of the law, but should be regarded as approximate estimates only. Consult a financial planner for a more personalized estimate.


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