Eligible parents could receive a $250 or $300 advance monthly payment in less than four weeks.
Sarah Tew/CNET
You’ve probably heard of the advance child tax credit program and its benefits. Do you know if your household is eligible for the cash relief? There’s a high probability, but you’ll need to know your total income and the rules for kids of different age groups. And if you’re in a shared custody arrangement, you should know some other requirements as well. Read on for more.
If you’re eligible, how much will that first check be on July 15? We can help you calculate how much you’ll get over the next year. In the next several days, there’ll be more resources at your fingertips as the IRS issues checks and unveils new web portals to assist parents with things like updating their household details. One tool for nonfilers is already open.
Families that need more details about the child tax credit can read this primer on payments and review tips for how to use the child tax credit money. We’ve also put together key details on stimulus check plus-up payments and monitoring what could be holding up your income tax refund. We’ve updated this story recently.
Look out for two letters in the mail from the IRS
If a letter arrives in your mailbox from the IRS, don’t fret. Chances are, it’s the tax agency letting you know you’re one of 36 million families who may be eligible for a child tax credit payment. The IRS will send the letter if it has determined that you could qualify for child tax credit money, based on your 2019 or 2020 federal income tax return. If you don’t typically file taxes, the IRS can use any information you submitted online using what’s called the nonfilers tool, to flag you for eligibility if you have kids.
That’s just the first letter giving you a heads-up that you might qualify. The IRS plans to send a second letter to confirm that you’re eligible, and to estimate how much child tax credit money you could get when payments start July 15. To recap, the tax credit is up to $3,600 per child under age 6, and up to $3,000 for each child ages 6 to 17. When broken down into the advance monthly payments you could choose to receive this year, that’s $300 or $250 per child.
You don’t need to do anything if you receive this letter, except hold on to it in case you need to reference it later on. Nonfilers and other people who don’t get the letter, don’t worry quite yet. Here’s more to know about the IRS letter — and read on for more qualification tips.
Watch this:
Child tax credit: Everything we know
3:56
Use the coming IRS child tax credit portals
By the end of June, the IRS intends to have both of its web portals open to help you get your child tax credit money. The portal for nonfilers is already open. Another tool, an interactive eligibility assistant, will help families determine whether they qualify.
The online portals will also let you add new information, correct or update outdated details — like the number of kids you have — and make a few other decisions about opting out of several smaller payments.
Calculating your child tax credit payment in advance can help with budgeting expenses.
Sarah Tew/CNET
Review child tax credit rules and calculate your amount
Instead of waiting for the IRS to send you a letter, you can make an educated guess about your qualification status fairly easily. We think the fastest way is to use our child tax credit calculator. Just enter your yearly income and number of kids. Don’t worry — the calculator is private and anonymous and won’t store or use any of your personal information.
For the most part, the calculator tool will tell you what you need to know. However, there are some outlier qualifications that could crop up. For example, in some cases it’s possible your income will disqualify you.
And while parents of new babies will generally qualify for the full amount, that could change if you share custody of a child. US citizenship also plays a role, so if any of your kids are adopted from another country, you’ll want to make sure you know all the rules that apply to kids.
For more, check here to see if your state owes you money, how you could get money back for your child care costs and if you could expect a refund for the unemployment tax break.