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Home / Tips and Tricks / When will the $ 3,600 Child Discount be paid out and how often? 1 important thing to know

When will the $ 3,600 Child Discount be paid out and how often? 1 important thing to know


Details on the child discount payouts have not yet been determined, but they are expected to start in July. This is what we now know.

Sarah Tew / CNET

Families could see a big boost in their family budgets over the next 12 months, with the third Stimulus controls now turn off in front of up to $ 1,400 per qualified adult and dependent and an extension of child tax credit (CTC) which up to $ 3,600 per childHowever, the rules about the temporary CTC are complicated and confusing, and some have yet to be established. Here’s the most important thing to know: Payments are split between 2021 and 2022.

There are also other sources of confusion. For example, each child counts towards a different amount depending on how old they are, and there are income limits for parents also, based on their AGIIf you are not married to the the other parent of the child and share custodyThere is more to know, and if you are overpaid you shouldn’t spend that money, but the details so far are only vague about what you can do to make sure that doesn’t happen.

We share what we know below. At the IRS process stimulus controls and tax returns At the same time, we do not expect the roll-out of the child discount until after the new tax deadline of May 17 is behind us. Until then, here’s what we know about CTC payments today. If you waiting for your check for $ 1,400, you can track your payment here, and here’s the status of a potential fourth stimulus controlThis story was recently updated.

Why CTC Payments Are Split Between 2021 and 2022

The first thing to know is that you will not receive 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 is 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 in 2021 the checks will start to come out as “prepayments”.

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 start with 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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This is how the child discount could be paid out

The amount you receive is half of what you owe under the 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. Keep in mind 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 to pay, you would get an estimated $ 250 a month from July to 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 have not yet been 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.

Will the payment of the child discount be on a schedule?

According to the text of the incentive proposal, the child discount is paid “periodically” from July to December. However, the IRS has not shared how often it will be able to 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 could the IRS send 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 by 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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What if you’ve already filed your taxes for 2020?

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 file their 2020 tax returns by May 17, the new tax term.

However, non-filers will have to file a tax return for 2020 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.

What is this with an IRS portal 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

Do you have to return money to the tax authorities if you receive more child discount 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 get the whole CTC bundle at once instead of multiple 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 higher 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 could happen 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, be here Top 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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