See How Much You Can Claim – Forbes Advisor

Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Since July, millions of families have received monthly child tax credit payments of up to $ 300 per child. However, the monthly payments will end in December if Congress does not adopt the Build Back Better plan.

Your child tax credit payment is based on your income, the child’s age and the number of dependents. The Internal Revenue Service (IRS) will use your 2019 or 2020 tax return (whichever is more recent) or the information you entered in the IRS Non-Filer Tool to determine your monthly payment.

Use our calculator to estimate how much you and your family could receive.

What is your filing status?

Number of dependents you are claiming

Disclaimer: Your 2021 child tax credit payment may differ from the result you see here, depending on factors such as your income, other deductions and credits applicable to your personal tax situation. Calculations are estimates based on American Rescue Plan Act numbers 2021 through 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 American Rescue Plan Act numbers 2021 through 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 the American Rescue Plan, this calculator takes into account your estimated Adjusted Gross Income (AGI), the number of dependent children you have, and your age. of each eligible child.

Because this calculator can capture an estimated AGI, your estimate may change the expected monthly payment. As part of Biden’s US bailout, the child tax credit is based on modified adjusted gross income (MAGI), which is your AGI plus some income, such as foreign income. However, our calculator uses AGI to simplify the calculation for you.

Frequently Asked Questions (FAQs) about the Expanded Child Tax Credit

What is the child tax credit?

The Child Tax Credit provides a financial benefit to Americans with qualifying children. For tax years before 2021, the IRS allowed you to claim up to $ 2,000 per child under 17. The credit reduced 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 amount of the child tax credit has increased to $ 3,600 per child under 6 and up to $ 3,000 per child 6 to 17 years old. In addition, the credit is now fully refundable.

Is the new extension of the child tax credit law?

Yes, but it is only temporary. The new child tax credit was part of the American Rescue Plan Act, a $ 1.9 trillion coronavirus stimulus package enacted on March 11 and only applies to the tax year 2021.

However, Congress will extend the child tax credit for an additional year, 2022, if the Build Back Better plan is passed.

How much is the child tax credit?

For each eligible child under the age of 6, you can receive up to $ 3,600. For eligible children aged 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 to December 15. Eligible families will receive payments by direct deposit or check. Since the payments are half the credit, you can claim the remaining amount on your 2021 tax return, due in 2022.

The IRS will send these payments automatically, so most taxpayers won’t need to take action. However, the IRS will either use your 2019 or 2020 tax return on file or the information you provided through the non-filer tool.

I haven’t received my payments. What do I do?

If you miss a payment, you should frequently check the Child Tax Credit Update Portal for updates. If you need to change your payment information, you can do so here.

If it’s been several weeks and you still haven’t received your payment, you may be able to initiate a payment follow-up.

Who is eligible for the child tax credit for 2021?

Is this credit likely to become permanent?

We do not know yet. Currently, the expansion of the child tax credit is only available for the 2021 tax year. While President Biden has expressed interest in making the credit permanent, the current version of Build Back Better, Biden’s key social change legislation, only extends the expansion for a year.

How do I update my banking information?

You can update your banking information using the Child Tax Credit Update Portal.

To log into the portal, you can use your existing IRS username and password or create an ID.me account.

If I had a child in 2021, can I receive the monthly child tax credit payment?

Yes. The IRS allows you to provide an update to the Child Tax Credit Update Portal for all eligible children that you can claim on your 2021 tax return.