Everything to know about your August child tax credit payment

Everything to know about your August child tax credit payment

The IRS is now issuing its second advance monthly child tax credit payment to millions of eligible families. Those who qualify will get their money through direct deposit or mail (up to $300 each month for each child under age 6, and up to $250 a month for each kid 6 to 17) on or around Aug. 13. This year, qualifying families get half of the total in these monthly installments to help with expenses. The other half comes in one payout next year.

You can use CNET’s calculator to check how much money your family should be receiving based on income and age requirements. The advance payments are automatic but not mandatory, meaning parents can opt out of the monthly checks if they’re worried about eligibility. But they must do so by Aug. 30 for the next payment in September. Households with complicated tax situations or changes in income may want to unenroll now to avoid any tax headaches in the spring.

Below, we’ll answer some common questions about the child tax credit and how this year’s advance payments might affect your taxes. We’ll also explain how you can manage your household details through the online IRS portals. If you’re still waiting on July’s payment or got less money than expected, we can tell you what might be happening with your money. This story is updated on a frequent basis.

When are the advance child tax credit payments this year?

You won’t get all of the child tax credit money this year. You’ll get half of the money in monthly payments, and the rest in 2022 when you file your taxes, unless you tell the IRS you want to unenroll from the advance payments to get one lump sum next year. The second check was scheduled to be issued Friday, Aug. 13.

So in other words, your largest payment arrives next year — up to $1,800 per child. Until then, you get six smaller payments in total this year to start using right away. The idea is to bring you money sooner to meet expenses like rent, food and daycare, which is why the checks are “advance payments.”

How much money will I receive in advance monthly checks?

How the child tax credit payments will be divided between 2021 and 2022 might be confusing. For each qualifying child age 5 and younger, up to $1,800 (half the total) will come in six $300 monthly payments this year. For each kid between the ages of 6 and 17, up to $1,500 will come as $250 monthly payments six times this year.

The IRS bases your child’s eligibility on their age on Dec. 31, 2021, so a 5-year-old turning 6 in 2021 will qualify for a maximum of $250 per month. For both age groups, the rest of the payment will come with your 2021 tax refund when you claim the remainder of the credit in 2022.

If you have a dependent who is 18 years old, they can qualify for $500 each. Dependents between the ages of 19 and 24 may qualify as well, but they must be enrolled in college full time. Here’s more on the financial details for qualified dependentsRead more>>

Source:-cnet 

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