Here’s who isn’t eligible for the $300 child tax credit payment this week

The new child tax credit program will begin on Thursday. 

Sarah Tew/CNET

Planning on getting a child tax credit payment this Thursday or will your revenue and the age of your youngsters make you ineligible? Most households with youngsters will qualify for no less than a few of the credit, however the guidelines and necessities are a bit tough now.

Qualifying households will get the total quantity of the credit if their incomes are beneath the set threshold. Once incomes go above the threshold, the amount of the credit will start to part out till it reaches its cap — we’ll clarify beneath. To get the advantages for the 2021 tax yr, dependents must be 17 or youthful by the finish of December. Adopted youngsters and babies born in 2021 might qualify, too. 

Those who are eligible will mechanically get 50% of their 2021 child tax credit quantity by means of six advance month-to-month installments and might declare the different 50% on their taxes later. Or they get the possibility of claiming 100% of the credit in 2022 in the event that they unenroll from the monthly payment program. We’ll break all of it down for you beneath. Here’s sign up for the IRS tools to handle your checks and the way the child tax credit could affect your taxes subsequent yr. We have up to date this story not too long ago. 

What are the revenue and age caps for the 2021 child tax credit?

The IRS appears at your loved ones’s adjusted gross income, or AGI, the ages of your dependents and a handful of different issues to find out if you happen to meet the necessities for the child tax credit funds. Here’s a fast take a look at household revenue and dependent age limits.

Income and age caps for the child tax credit

Family upper-income qualification restrict Dependent age {qualifications}
Single filer — AGI beneath $240,000 Ages 5 and youthful — as much as $3,600
Head of family — AGI beneath $240,000 Ages 6 to 17 — as much as $3,000
Couple submitting collectively — AGI beneath $440,000 Age 18 — $500
Ages 19 to 24, full-time faculty college students — $500

What are the child tax credit age necessities for youngsters?

If your dependents are beneath the age of 6 on Dec. 31, you possibly can declare as much as $3,600 per child so long as you meet the revenue necessities, that are listed beneath. That’s $1,600 greater than the $2,000 that folks had been in a position to declare on their 2020 tax returns. 

This contains newborns, even when they’re born later in 2021. Later this yr, dad and mom can be in a position to replace the IRS with their new dependent info in an online portal to obtain the appropriate advance funds this yr. Otherwise, dad and mom can file a declare on their 2021 tax return subsequent yr.

If your dependents are age 6 or older on Dec. 31, you may qualify for as much as $3,000 per child over the subsequent yr, assuming once more that you just meet the revenue necessities. This contains your dependents who are 17 years previous on Dec. 31. In prior years, dad and mom might solely declare as much as $2,000 for every dependent age 16 and youthful.

You can even get cash for your older youngsters, though it isn’t almost as a lot. You can declare as much as $500 for an 18-year-old, in addition to for full-time faculty college students ages 19 to 24. 

2021 child tax credit age brackets

Ages 5 and youthful Up to $3,600 every child, with half of credit as $300 month-to-month funds
Ages 6 to 17 Up to $3,000 every child, with half credit as $250 month-to-month funds
Age 18 $500 one-time examine in 2022
Ages 19 to 24, full-time faculty college students $500 one-time examine in 2022

What are the revenue necessities for households?

As lengthy as your adjusted gross income, or AGI, is $75,000 or much less, single taxpayer dad and mom will qualify for the full child tax credit quantity. Above $75,000, the quantity begins phasing out. At $240,000, single filers part out of the tax credit totally.

If you are married and submitting collectively along with your partner, your AGI must be $150,000 or much less to qualify for the full child tax credit quantity. At $440,000, {couples} will part out of the tax credit totally.

The credit phases out by $50 for each $1,000 of revenue over the threshold quantities for all filers, in response to Joanna Powell, managing director at CBIZ

As a head of family, your AGI will must be $112,500 or much less to qualify for the full child tax credit quantity. The quantity you could possibly get begins phasing out in case your revenue is over that quantity, and by $240,000 you part out of the tax credit.

2021 child tax credit revenue limits

Who qualifies What the regulation says
Single filer An AGI of $75,000 or much less to qualify for the full quantity
Head of family An AGI of $112,500 or much less to qualify for the full quantity
Couple submitting collectively An AGI of $150,000 or much less to qualify for the full quantity
Nonfiler Will have to file a 2020 tax return to get the payment

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Child tax credit: Everything we know


Is the IRS letter only for families who qualify? 

Last month, the IRS started sending letters to 36 million families notifying them they may be eligible to receive monthly child tax credit payments, based on their federal income tax return from either 2019 or 2020. The IRS should also have details for eligible families that used an older IRS nonfilers tool to claim a stimulus check.

The IRS will soon send eligible families a second letter with a personalized estimate of their monthly payment. 

Can families who don’t file taxes still get the payments?

Child tax credit payments will be automatic for those who filed their 2020 tax returns or claimed all their dependents on their 2019 tax return. If you don’t normally file taxes, because your income is too low or you don’t have a bank account or a permanent address, the IRS won’t know to send you a payment.

That means if you’re considered a nonfiler, you’ll need to act now to be able to receive the first round of payments this year. The IRS opened a new online portal for households that don’t traditionally file income taxes, so they can register their information — it’s also available in Spanish. You’ll need a number of things on hand before starting the process, including a mailing address, email address, tax information on your dependents and bank account information. 

Or, if you were planning on filing a 2019 or 2020 return but just haven’t gotten around to it yet, the IRS said to do so as soon as possible so your most recent information is on file for determining your payments.


Changes to the child tax credit this year increase the amount for low-income families. 

Sarah Tew/CNET

More child tax credit eligibility requirements you’ll need to know 

  • The child you’re claiming must live with you for at least six months out of the year.
  • You and your child must be US citizens, unlike mixed-status households. 
  • For married couples filing jointly, at least one spouse needs to have a Social Security number or an ITIN. 
  • The child must also have a Social Security number — a child with only an ATIN won’t qualify. (This includes adopted children.)
  • Parents who share custody of a child cannot both receive the tax credit.

Here’s what else to know about the 2021 child tax credit.

Important: The results here are based on our current knowledge of the law, but should be treated as broad estimates only. Consult a financial planner for a more personalized estimate.

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