Children who meet the age requirements could bring thousands of dollars to qualified families.
Angela Lang/CNET
As the expanded child tax credit makes its debut this week, many families still haven’t calculated how much they could get. Through the end of 2021, each qualifying child under age 6 could get your family a maximum of $300 a month, and each older dependent could get your family a maximum of $250 a month. The other portion of the child tax credit is paid out next tax season. Did you know there’s a chance that parents with kids over age 18 could also get money?
You don’t have to wait to see if you’re eligible for the child tax credit, or to calculate the estimated total. We’ve been covering all the bases for the 36 million households expected to benefit, like how to check your eligibility, how to use the IRS portals and how to see if you meet the income requirements. We can also explain how to unenroll from the advance payments if you really need (or want) the full credit in 2022 instead.
The expanded child tax credit was enacted as part of the American Rescue Plan in March. The expansion is temporary, meaning there’s no guarantee that the same amount of tax relief will come in future years. However, another boost to families is the increased amount they can claim in child care expenses this year — up to $16,000. Also, here’s what we know about the chances of a fourth stimulus check in 2021. This story has been updated.
Each dependent age 17 and younger: Up to $3,600 or $3,000
If you have dependents who are 17 years of age or younger, they can each count toward the new child tax credit. However, the amount they’re eligible for depends on their age. Kids between the ages of 6 and 17 will count for up to $3,000 each. Kids who are under the age of 6 can count for up to $3,600 each.
Families won’t receive the full amount of the credit on July 15, but a partial one. The initial payment next month is an advance payment of either $250 or $300, depending on the age of the child (see chart below). The total of the 2021 monthly installments will equal half the amount of the credit, with the other half of the credit coming next year during tax time. You can see a timeline of the payments and more information here.
2021 child tax credit age brackets
| Ages 5 and younger | Up to $3,600 each child, with half of credit as $300 monthly payments |
|---|---|
| Ages 6 to 17 | Up to $3,000 each child, with half of credit as $250 monthly payments |
| Age 18 | $500 one-time check in 2022 |
| Ages 19 to 24, full-time college students | $500 one-time check in 2022 |
Watch this:
Child tax credit: Everything we know
4:17
Each dependent age 18 to 24: Smaller one-time payment
If you have 18-year-old dependents, they can qualify for up to $500 each toward the child tax credit amount you’ll receive. If you have a dependent between the ages of 19 and 24 who is attending college full-time, they can also qualify for up to $500 each toward your total payment. That payment will come when you file your taxes in 2022.
Each baby born in 2021: Up to $3,600
If you’re expecting a baby before the end of 2021, the newborn will also qualify for up to $3,600. This includes children who are adopted if they’re US citizens (more below). You’ll be able to use the IRS Update Portal once that specific feature is available later in the summer — or you can claim the tax credit when you file your 2021 tax return next year.
Rules for dependents with disabilities
Children with disabilities can qualify for the child and dependent care credit separately from the child tax credit. You may be able to claim this credit if you paid expenses for the care of a qualifying dependent to enable you to work, per the IRS. The child tax credit would apply similarly to children with disabilities.
Rules for parents with shared custody
“Double-dipping” benefits for the same child worked for the first two stimulus checks, where a loophole entitled unmarried parents who share custody to both claim the child as a dependent in a specific situation. That isn’t the case with the 2021 child tax credit. In fact, overpayment could result in you being asked to return the money to the IRS.
Rules for dependents living with you half the year
If you’re claiming the new child tax credit for your child, note that the child must live with you at least six months out of the year. There are exceptions to this rule, though, including temporary absences. According to the IRS, “A person is considered to have lived with you during periods of time when one of you, or both, are temporarily absent due to special circumstances,” including illness, education, business, vacation and military service.
Also, a newborn child born later in 2021 is included in the exception and will be considered as living with you for the entire year. However, the IRS will be working off the 2020 tax return, which will not have children born in 2021 listed, so remember to update your information in the IRS’ Update Portal when you’re able to later in the summer.
Watch this:
Your tax questions answered in 3 minutes
3:26
Additional rules for dependents
If your child isn’t a US citizen and doesn’t have a Social Security number, there’s no way around this one: They don’t qualify. When you file your individual income tax return (Form 1040), you’re required to list your dependents and their Social Security numbers when you’re claiming them for the child tax credit.
This includes adopted children. An adopted child who isn’t a US citizen and has an ATIN or ITIN (adopted/individual taxpayer identification number) won’t qualify for the child tax credit, per the IRS. “The child must have an SSN to be a qualifying child eligible for the child tax credit.”
This is unlike the third stimulus check, where mixed-status households could receive a check and only one member of the household needed to have a Social Security number.
Here’s more information about the 2021 child tax credit and details on qualifications for parents to receive the payments.