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Home / Tips and Tricks / Will you be paid the child discount in July? Income rules and more

Will you be paid the child discount in July? Income rules and more

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

Sarah Tew/CNET

Are you expecting a payment child discount on July 15? Then we have good news: you will automatically receive the monthly payments throughout 2021. But with all things tax, the rules for the child discount are quite complicated.

For example, there are income requirements that you must meet in order to receive the payments – and your dependents have a specific age requirements. The payments are for up to $300 per month per child, or $3,600 total per child during this and next year. And yes, that includes babies born in 2021. And because the monthly payments are optional, eligible recipients may choose to receive the kiezen full lump sum when they file tax returns in 2022.

The American Families Plan proposed by the White House could extend the new child tax credit in the future. We will keep you informed. Did you know in the meantime that you $16,000 in childcare expenses next year? This is what happens to a potential fourth stimulus check, what to do if you lose your . did not receive third stimulus check, when it could come and how to track it?. This story was recently updated.

$3,600 total for each child under 6 years old

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, 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. The parent filing will be able to update the IRS portal with their new dependent information to receive the advance payments this year, said Garrett Watson, a senior policy analyst at Tax Foundation. Otherwise, parents can file a claim on their 2021 tax return next year.

$3,000 for each child between the ages of 6 and 17

If you have dependents who are 6 years of age or older, you are eligible for up to $3,000 per child in the coming year, assuming you meet the income requirements. (See the table above.) This includes your dependents who are 17 years old — originally, parents could claim up to $2,000 for each dependent 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.

This is what parents who share custody of a qualified dependent should know.

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Child discount: everything we know


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.

Qualifications child discount 2021

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

Child aged 5 and under

Credit for $3,600 each if parent/guardian meets above requirements

Child age 6-17

Credit for each $3,000 parent/guardian meets the above requirements


Must file a tax return for 2020 to receive payment

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.

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 a return to qualify for the 2021 child tax credit. IRS Commissioner Charles Rettig said payments will be automatic for those who file their 2020 tax returns before May 17, so if you have not filed your tax returns by then , the IRS doesn’t know to 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.


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.

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.

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

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