The Monthly Child Tax Credit Payment Calculator 2021: See How Much You May Qualify For – Forbes Advisor - Forbes

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Millions of families are starting to receive the monthly child tax credit payments up to $300 per child. The American Rescue Plan expanded the child tax credit from $2,000 to $3,600 per child for the 2021 tax year only.

Your new child tax credit payment is based on your income, child’s age and how many kids you have. The Internal Revenue Service (IRS) will use your 2019 or 2020 tax return (whichever is filed later) or information you entered in the non-filer tool to determine your monthly payment. Use this calculator to help you estimate how much you and your family might receive.

What is your filing status?

Single

Married

Head of household

Estimated AGI for 2021

Number of dependents you are claiming

Age 5 and under as of Dec. 31, 2021

Age 6-17 as of Dec. 31, 2021

Disclaimer: Your 2021 child tax credit payment may vary from the result you see here, depending on factors including your income, other deductions and credits that are applicable to your personal tax situation. Calculations are estimates based on the figures from the American Rescue Plan Act of 2021 as of March 11, 2021. They are subject to change. Check the IRS website for the latest information on the child tax credit.

Calculator disclaimer: *Calculations are estimates based on the figures from the American Rescue Plan Act of 2021 as of March 11, 2021. They are subject to change. Check the IRS website for the latest information on the child tax credit.

Calculator methodology

To estimate your monthly child tax credit payment under President Biden’s $1.9 trillion American Rescue Plan, this calculator considers your estimated adjusted gross income (AGI), how many dependent children you have and each qualifying child’s age.

Since this calculator allows you to input an estimated AGI, your estimate may change the anticipated monthly payment output. Under Biden’s American Rescue Plan, the child tax credit is based on the modified adjusted gross income (MAGI), which is your AGI plus certain income, such as foreign income. However, our calculator uses AGI to simplify the calculation for you.

Frequently Asked Questions (FAQs) About Biden’s Child Tax Credit

What is the Child Tax Credit?

The child tax credit is a tax credit that provides a financial benefit to Americans with children. For tax years before 2021, the IRS allowed you to claim up to $2,000 per child under the age of 17. The credit lowered the amount you owed in taxes and you could be refunded up to $1,400 if you owed less than that amount.

For 2021, the child tax credit amount has increased up to $3,600 per child under 6 and up to $3,000 per child ages 6 to 17. Also, the credit is now fully refundable.

Is the New Child Tax Credit Expansion a Law?

Yes, but it’s only temporary. The new child tax credit was part of the American Rescue Plan Act, a $1.9 trillion coronavirus stimulus package signed into law on March 11, and is for the 2021 tax year only.

How Much is the New Child Tax Credit?

For each qualifying child under the age of 6, you may receive up to $3,600. For qualifying children ages 6 to 17, you can receive up to $3,000 per child.

When and How Will I Receive The New Child Tax Credit?

The IRS will pay the child tax credit in monthly installments from July 15 through Dec. 15. Qualifying families will receive the payments via direct deposit or check. Since the payments are equivalent to half the credit, you will be able to claim the remaining amount on your 2021 tax return, due in 2022.

The IRS will send these payments automatically, therefore most taxpayers will not need to take any action. However, the IRS will use either your 2019 or 2020 tax return on file or information you provided via the non-filer tool.

Who Qualifies for the Child Tax Credit for 2021? How Will The Child Tax Credit Phase Out Work?

	Single	Head of Household	Married
Full Expanded Child Tax Credit Payment	If your MAGI is $75,000 or under, you will receive $3,600 per child under 6 and $3,000 per child age 6-17	If your MAGI is $112,500 or under, you will receive $3,600 per child under 6 and $3,000 per child age 6-17	If your MAGI is $150,000 or under, you will receive $3,600 per child under 6 and $3,000 per child age 6-17
Partial Expanded Child Tax Credit	If your MAGI is over $75,000, the credit is phased out by $50 per $1,000 over the $75,000 income limit	If your MAGI is over $112,500, the credit is phased out by $50 per $1,000 over the $112,500 income limit	If your MAGI is over $150,000, the credit is phased out by $50 per $1,000 over the $150,000 income limit
Original Child Tax Credit Payment	You’ll receive $2,000 (the original child tax credit amount) if your MAGI is between $107,000 and $200,000 for a child age under 6, and $95,000 and $200,000 for a child age 6-17. The old child tax credit phase outs apply for a MAGI over $200,000	You’ll receive $2,000 (the original child tax credit amount) if your MAGI is between $144,500 and $200,000 for a child age under 6, and $132,500 and $200,000 for a child age 6-17. The old child tax credit phase outs apply for a MAGI over $200,000	You’ll receive $2,000 (the original child tax credit amount) if your MAGI is between $182,000 and $400,000 for a child age under 6, and $170,000 and $400,000 for a child age 6-17. The old child tax credit phase outs apply for a MAGI over $400,000

Single

Head of Household

Married

Full Expanded Child Tax Credit Payment

If your MAGI is $75,000 or under, you will receive $3,600 per child under 6 and $3,000 per child age 6-17

If your MAGI is $112,500 or under, you will receive $3,600 per child under 6 and $3,000 per child age 6-17

If your MAGI is $150,000 or under, you will receive $3,600 per child under 6 and $3,000 per child age 6-17

Partial Expanded Child Tax Credit

If your MAGI is over $75,000, the credit is phased out by $50 per $1,000 over the $75,000 income limit

If your MAGI is over $112,500, the credit is phased out by $50 per $1,000 over the $112,500 income limit

If your MAGI is over $150,000, the credit is phased out by $50 per $1,000 over the $150,000 income limit

Original Child Tax Credit Payment

You’ll receive $2,000 (the original child tax credit amount) if your MAGI is between $107,000 and $200,000 for a child age under 6, and $95,000 and $200,000 for a child age 6-17.

The old child tax credit phase outs apply for a MAGI over $200,000

You’ll receive $2,000 (the original child tax credit amount) if your MAGI is between $144,500 and $200,000 for a child age under 6, and $132,500 and $200,000 for a child age 6-17.

The old child tax credit phase outs apply for a MAGI over $200,000

You’ll receive $2,000 (the original child tax credit amount) if your MAGI is between $182,000 and $400,000 for a child age under 6, and $170,000 and $400,000 for a child age 6-17.

The old child tax credit phase outs apply for a MAGI over $400,000

Is This Credit Likely to Become Permanent?

The new child tax credit expansion is for the 2021 tax year only. However, President Biden wants to extend it to 2025, through the American Families Plan.

What Must I Do to Receive My Payments?

In most cases, you will not need to take any action to receive the payments. The IRS will determine your eligibility based on your 2019 or 2020 tax returns and information you submitted via the non-filer tool.

If you are considered a non-filer and never used the non-filer tool, you will need to do so. Typically, a non-filer earns less than $12,400 for single filers and $24,800 for married filers. If you are required to file a tax return, you should file your 2019 or 2020 tax return as soon as possible.

What Are the Scheduled Monthly Child Tax Payments for 2021?

The IRS will start to make monthly payments from July 15 until the end of the year.


Payment #1	July 15
Payment #2	Aug. 13
Payment #3	Sept. 15
Payment #4	Oct. 15
Payment #5	Nov. 15
Payment #6	Dec. 15

How Do I Update My Banking Information?

The IRS will allow you to update your banking information using the Child Tax Credit Update Portal.

What If I Had a Child in 2021, Can I Receive the Monthly Child Tax Credit Payment for my Child?

Yes. The IRS will allow you to provide an update to the Child Tax Credit Update Portal for any qualifying children you expect to claim on your 2021 tax return.

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The Monthly Child Tax Credit Payment Calculator 2021: See How Much You May Qualify For – Forbes Advisor - Forbes

Child Tax Credit

CALCULATOR

What is your filing status?

Number of dependents you are claiming

Calculator methodology

Frequently Asked Questions (FAQs) About Biden’s Child Tax Credit

What is the Child Tax Credit?

Is the New Child Tax Credit Expansion a Law?

How Much is the New Child Tax Credit?

When and How Will I Receive The New Child Tax Credit?

Who Qualifies for the Child Tax Credit for 2021? How Will The Child Tax Credit Phase Out Work?

Is This Credit Likely to Become Permanent?

What Must I Do to Receive My Payments?

What Are the Scheduled Monthly Child Tax Payments for 2021?

How Do I Update My Banking Information?

What If I Had a Child in 2021, Can I Receive the Monthly Child Tax Credit Payment for my Child?

0 Response to "The Monthly Child Tax Credit Payment Calculator 2021: See How Much You May Qualify For – Forbes Advisor - Forbes"

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The Monthly Child Tax Credit Payment Calculator 2021: See How Much You May Qualify For – Forbes Advisor - Forbes

Child Tax Credit

CALCULATOR

What is your filing status?

Number of dependents you are claiming

Smart Financial Decisions Made Simple

Calculator methodology

Frequently Asked Questions (FAQs) About Biden’s Child Tax Credit

What is the Child Tax Credit?

Is the New Child Tax Credit Expansion a Law?

How Much is the New Child Tax Credit?

When and How Will I Receive The New Child Tax Credit?

Who Qualifies for the Child Tax Credit for 2021? How Will The Child Tax Credit Phase Out Work?

Is This Credit Likely to Become Permanent?

What Must I Do to Receive My Payments?

What Are the Scheduled Monthly Child Tax Payments for 2021?

How Do I Update My Banking Information?

What If I Had a Child in 2021, Can I Receive the Monthly Child Tax Credit Payment for my Child?

0 Response to "The Monthly Child Tax Credit Payment Calculator 2021: See How Much You May Qualify For – Forbes Advisor - Forbes"

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