2021 Child Tax Credit

July 30, 2021 11:45 am

Do you have kids under the age of 18? If you do, you likely received your first Child Tax Credit payment in July, with five more monthly payments on the way.

Although the Child Tax Credit is something families with children receive every year, the American Rescue Plan Act of 2021 increased the credit and advanced half the amount this year to provide support for families now. This means you’ll get half the credit as monthly payments July through December, and the other half when you file your 2021 taxes.

Eligible families will receive:

$3,600 per child ages 0-5 ($300/month now until the end of 2021, plus $1,800 next year)
$3,000 per child ages 6-17 ($250/month now until the end of 2021, plus $1,500 next year)

Note: The Child Tax Credit is based on the age your child turns in 2021. Teens turning 18 this year do not qualify.

Who is eligible for the Child Tax Credit?

Families are eligible for the full benefit if they:

Have children ages 0-17 who live with them more than half of 2021
Make less than $112,500 (as a single parent) or $150,000 (married)

How do I get the Child Tax Credit?

You’ll automatically receive monthly payments by direct deposit or check if you filed taxes in the last two years or signed up to receive a stimulus check. Payments go out on the 15th of every month.

Otherwise, you’ll need to fill out a form at IRS.gov to begin receiving your payments.

Will the Child Tax Credit affect the government benefits I receive?

No. Advance Child Tax Credit payments are not reported as income and do not affect your eligibility for federal benefits like SNAP or WIC. They’re also not taxable.

Can I change how I receive the Child Tax Credit?

Yes, you can. You can manage your payments at IRS.gov and opt out of monthly payments for any reason. You’ll receive any remaining Child Tax Credit when you file your 2021 taxes.