Got the first child tax credit check, but not sure if you qualify? Here’s how to check

You could have to pay the IRS again throughout tax time if you obtained advance funds, but do not qualify. 

Sarah Tew/CNET

The large day is right here — the first child tax credit fee landed in thousands and thousands of financial institution accounts this morning. Eligible dad and mom obtained up to $300 this morning for the first installment of six month-to-month funds by means of December. You’ll get the the rest with subsequent 12 months’s tax refund. Dependents ages 18-24 will obtain the full quantity throughout tax season as an alternative of month-to-month funds. But if you bought the further money and do not qualify, you could have to pay the IRS again subsequent 12 months. The advance month-to-month child tax credit funds do not apply to everybody — it depends upon the mum or dad’s earnings and the mum or dad’s age. If your circumstances have modified throughout the pandemic — resembling a promotion or the place your child lives — you might have to check your eligibility and decide out of the program. 

To check your eligibility, you can reply two fast questions utilizing the IRS Eligibility Assistant instrument, which can also be out there in Spanish. Then, you can use the Child Tax Credit Update Portal to see if you qualify based mostly in your most up-to-date tax return. You’ll want private info, like your earnings, submitting standing and variety of youngsters, to decide if you qualify for advance funds. 

If you’re eligible and cash wasn’t deposited into your checking account, you could also be getting a mailed check as an alternative. And though you’re eligible you haven’t got to declare the cash now. Instead, you can decide out utilizing the Child Tax Credit Update Portal by the subsequent deadline, Aug. 2. If you haven’t got an account with the IRS but, you can set one up using If you bought the cash this morning — the overwhelming majority of households ought to have — use CNET’s child tax credit calculator to see how a lot cash you can count on all through the 12 months. It could possibly be up to $3,600 per child between 2021 and 2022. Also, this is what you want to learn about how the child tax credit will affect your taxes if you’re getting the extra cash now. We will replace this story as wanted. 

What are the child tax credit eligibility necessities? 

Parents could qualify for early child tax credit funds if they meet one in every of the following guidelines outlined by the IRS. 

  • $150,000 in whole earned earnings if married and submitting collectively
  • $75,000 in earned earnings if submitting single 

If dad and mom meet these earnings necessities, every dependent beneath 6 could rise up to $300 per 30 days by means of December and the different half throughout the 2022 tax season – totaling $3,600. Children ages 6-17 could obtain up to $250 per 30 days and up to $3,000 whole. 

If you make greater than the earnings necessities, you should get advance child tax credit funds, but lower than the most quantity. The IRS subtracts $50 from every advance check for each $1,000 after the earnings restrict. So if you make $85,000 as a single-filer, you could also be eligible for up to $200 per 30 days — relying in your child’s age.

There are a couple of different eligibility requirements for dependents to consider: 

  • Must be a US citizen 
  • Must be youthful than 17 earlier than the final day of the tax 12 months
  • Must be claimed on the mum or dad’s tax return 

If you’re not sure of whether or not or not you qualify based mostly on the necessities, check the Eligibility Assistant instrument and replace your info utilizing the Child Tax Credit Update Portal. To be on the secure aspect, you can even decide out and get one lump sum throughout tax time subsequent 12 months. 

What tax info do I would like to check my eligibility? 

Before you start, make sure you’ve bought a duplicate of your 2020 tax return, or your 2019 tax return if you have not but filed your taxes this 12 months (for instance, if you filed an extension). If you haven’t got a tax return available, you can use your submitting standing and the variety of youngsters you claimed, together with an estimate of your whole earnings for 2020. 

You can use the IRS’ Eligibility Assistant instrument to reply a couple of fast questions. If you qualify, you’ll use your tax return and the Child Tax Credit Update Portal to see if you’re enrolled for funds. You can even unenroll — even if you do not qualify, but bought your first check. 

How do I take advantage of the Eligibility Assistant instrument on the IRS web site?

Once you’ve discovered what your earnings was for 2020 or 2019, you can check your eligibility. Here’s how.

1. Go to the Advance Child Tax Credit Eligibility Assistant instrument web page on the IRS web site.

2. Tap or click on Check Your Eligibility.

3. You’ll then want to reply a couple of questions on your self and your taxes. For occasion, the kind will ask if you claimed the child tax credit on a earlier tax return.

4. You might have to present extra info, relying on how you answered the questions. Here’s the place you fill in your submitting standing, adjusted gross earnings and the variety of youngsters you claimed in your tax return (together with their ages).

5. After you hit Next, the instrument will let you know whether or not you qualify based mostly on the solutions you supplied. It’ll inform you the quantity every child beneath 6 qualifies you for, and how a lot every child 6 and older qualifies you for. It’ll additionally present you the earnings phaseout particulars.

6. From right here, faucet or click on Manage your advance child tax credit funds, which is able to take you to the child tax credit portal that lets you unenroll from the monthly payments if you’d want to get one massive check as an alternative of a number of smaller ones, or submit your info if you’re a nonfiler.

Keep in thoughts that the Eligibility Assistant instrument and Child Tax Credit Update Portal do not inform you how a lot you are eligible for. 

$300 cash with calculator

Advance child tax credit funds have been deposited in thousands and thousands of financial institution accounts Thursday morning.

Sarah Tew/CNET

What info does the Eligibility Assistant instrument not inform me?

  • The customized whole you’ll get from the child tax credit fee. It leaves it up to you to do the math.
  • How a lot the funds can be diminished if your earnings exceeds the restrict.
  • All of the fee dates for the child tax credit.
  • Only one mum or dad can declare the cash for any given child in a shared custody situation.

Do I get child tax credit funds if I’ve a child this 12 months?

If you have a baby you’ll want to replace your info in the IRS Update Portal when that function is made out there in late summer season. Once the company has your up to date particulars on file, you’ll be eligible to obtain future funds. For occasion, if your child is born Aug. 20, you may begin getting the advance funds in September. You’ll have to wait till 2022 to get the July and August funds retroactively. 

If your child is born in December 2021, you can declare the cash you did not get from July by means of December when you file your taxes subsequent 12 months. If you have a new child in January 2022, you will not be eligible for the bigger sum of cash that was accepted in the American Rescue Plan, but you could possibly be eligible for the authentic quantity — except the enhanced child tax credit is prolonged.

You can discover a solution to a few of these questions in our child tax credit FAQ

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