What the New Child Tax Credit Could Mean for You Now and for Your 2021 Taxes
Jul 19, 2021
Whether you're behind on bills because of the pandemic and trying to pay off debt quickly with a low income or want to build up your emergency fund, the new advance Child Tax Credit could be a major boost for parents.
Here's what the new Child Tax Credit, which launched on July 15, 2021, could mean for you now and when filing your 2021 taxes next year.
Who qualifies for the Child Tax Credit?
If you—and your spouse, if you're married and filed jointly—filed your 2019 or 2020 tax return and claimed the Child Tax Credit, you qualify for the new advance Child Tax Credit.
If you haven't done that, you can still qualify if you meet the following criteria:
- You provided the IRS in 2020 with your information to receive the Economic Impact Payment using the "Non-Filers: Enter Payment Info Here" tool
- You have a main home in the U.S. (50 states or Washington, D.C.) for more than half the year, or your spouse who you file jointly with has a main home in the U.S. for more than half the year
- You have a qualifying child under the age of 18 by the end of 2021 who also has a valid Social Security number
- You made less than the income limit of $240,000 for single filers or heads of household and $440,000 for couples filing jointly.
What the new Child Tax Credit means for you in the immediate
Assuming you meet those qualifications, you're in line for some money in the form of advance monthly payments equal to half of the total credit amount, with the first one going out on July 15. You'll claim the other half when you file your 2021 income tax return (mark your calendar now for Tax Day on April 15, 2022). But note that this only applies to your 2021 taxes.
The amount you receive depends on the number of children you have, their ages, and your income. To qualify for the maximum amount, you need to have an adjusted gross income (AGI) of $75,000 or less as a single filer, $112,500 or less as head of household, or $150,000 as a couple filing jointly. Those making above those limits will see their tax credit phase out by $50 for every $1,000 they make above those levels until the $240,000 maximum for single filers/heads of household and $440,000 maximum for couple filing jointly.
How will the new Child Tax Credit affect your 2021 tax refund?
If you have concerns about whether you're eligible to receive the new advance Child Tax Credit, you may want to consult a professional. If it turns out you don't qualify but you receive the credit, you'll need to pay back the man when you file your 2021 taxes next year, which could ultimately set you back further.
The IRS also has an Advance Tax Child Credit Eligibility Assistant, which can help you navigate on your own whether you qualify.
While it's too late to opt out of the first advance Child Tax Credit, you can potentially opt out for future payments if you do it far enough in advance. For instance, you need to opt out of the Augus 15 payment by 11:59 p.m. on August 2, using the IRS' Child Tax Credit Update Portal.
Leave it to kids to make receiving *free money* from the government difficult.
Press Release Service by Newswire.com
Original Source: What the New Child Tax Credit Could Mean for You Now and for Your 2021 Taxes
More News
How Hong Kong-raised artist Cici Wu turns her diasporic experiences into poignant works
In her New York solo exhibition at 47 Canal, Hong Kong-raised artist Cici Wu animates the gallery space with 11 paper lanterns made using traditional techniques. Inside the lanterns constructed with bamboo and willow sticks and sheathed in mulberry paper, she has placed pulsating LED lights that cast moving shadows. There is something cinematic about these luminous sculptures that are traditionally vessels of memories and loss. The pulsating light in each lantern corresponds to a section of the...
American Airlines Joins the $150 Credit Card Club. What Do Travelers Get?
American Airlines and Citi are raising annual fees on two AAdvantage credit cards to $150, adding travel credits and rewards while leaving cardholders to decide whether the benefits justify paying more. The post American Airlines Joins the $150 Credit Card Club. What Do Travelers Get? appeared first on Business Traveller.
Etihad Rail Partners with Citymapper for Journey Planning
Passengers can now use the Citymapper app to map out first- and last-mile connections alongside national rail services in the UAE The post Etihad Rail Partners with Citymapper for Journey Planning appeared first on Business Traveller.
Global Industry Leaders Take the Stage at ITB Americas Conference 2026
With the inaugural ITB Americas set to kick off in just two weeks, 90+ speakers from WTTC, Netflix, Expedia Group and beyond are set to take the stage at the ITB Americas Conference in Guadalajara. Featuring over 40 sessions, the ITB Americas Conference will bring together leading voices across the travel industry to explore the trends, challenges and opportunities shaping the future of travel. Taking place alongside the inaugural ITB Americas from 10 to 12 November 2026 at Expo Guadalajara, the ITB Americas Conference will serve as a platform for three days of strategic dialogue, industry insights and international exchange. As the show’s knowledge hub, the conference will connect senior executives, policymakers, destination leaders and innovators to explore the developments transforming travel across the Americas and global markets.
Unveiling Janu Residences, Al Marjan Island by Aman Group: A New Coastal Expression of Janu Living
Set along the shores of Al Marjan Island in Ras Al Khaimah, Janu Al Marjan Island brings Janu’s distinctive approach to coastal living to one of the United Arab Emirates’ most anticipated and exclusive waterfront addresses for the first time. Just 70 km from Dubai, the development is located adjacent to Wynn Al Marjan Island, the region’s first integrated resort. Part of Aman Group, Janu is a hotel, residence and lifestyle brand offering a new expression of hospitality, centred on connection, wellbeing and shared experiences.
WTTC Hails London as a Model for Growth as Global Travel Leaders Gather for WTM
The World Travel & Tourism Council (WTTC) has welcomed the launch of the new Oxford Street traffic-free zone in London, supporting its view that the city is a strong model for growth in Europe and focused on attracting more tourism. As global Travel & Tourism industry leaders gather for the World Travel Market (WTM) in London, WTTC is forecasting that the sector will grow in Europe by 3.1% in 2026, continuing to outperform the wider economy and exceeding the sector’s 2.6% growth recorded last year.
Meet NFL star Drake Maye’s wife Ann Michael, whose ‘Bakemas’ TikTok series went viral
New England Patriots quarterback Drake Maye may be making headlines for his prowess on the field, but his wife, Ann Michael Maye, is making a name for herself on social media. View this post on Instagram A post shared by Ann Michael Maye (@annmichaelhmaye) With over 600,000 followers on TikTok and over 584,000 on Instagram, Ann Michael went viral in December last year when she launched the “Bakemas” series on TikTok, where she baked a new holiday-themed item...
Touch grass, literally: Explore why walking therapy is on the rise
The growing practice of outdoor ecotherapy, specifically walk-and-talk therapy, uses rhythmic steps and ambient sensory grounding to help clients open up.
There’s More to Qatar: Why Business Travellers are Staying Longer
Abdulaziz Ali Al-Mawlawi, CEO of Visit Qatar, explains how the country is turning global connectivity and a packed events calendar into a compelling destination for extended stays. Visit Qatar will appear at World Travel Market (WTM) London next week. The post There’s More to Qatar: Why Business Travellers are Staying Longer appeared first on Business Traveller.
Eh, could Canada be the next big wine country? Find out at Hong Kong Wine & Dine Festival
“We’re in the golden age of Canadian wines,” legendary wine writer Tony Aspler tells me confidently. We are at an intimate showcase of the stuff at the Canadian consulate in Hong Kong’s Quarry Bay neighbourhood, where representatives of nine wineries have gathered to prove that the true north has more than ice wine to offer. As a wine drinker with no particular bias – I will happily quaff a funky Austrian pét-nat (sparkling wine) as much as a fine Burgundy – it was natural for me to enter with...
Journey Beyond Expands National Tourism Portfolio and Launches Island Connections
Continuing its growth across Australia’s tourism sector, Journey Beyond has unveiled Island Connections, a new national brand for its recently acquired SeaLink marine operations, bringing together ferry and marine transport services under a single identity. The launch follows the completion of Journey Beyond’s acquisition of Kelsian Group’s national tourism portfolio, adding 14 tourism brands to the business, significantly expanding its footprint across Australia and reinforcing its position as one of the country’s leading experiential tourism operators.
The City Beyond the Skyline: Getting to Know the Real Doha
There is a particular moment in Doha, just before sunset, when the city seems to change pace. Along the Corniche, locals and visitors gather for an evening stroll as traditional wooden dhows drift across the bay. Across the water, the towers of West Bay catch the last of the afternoon light. Nearby, the narrow streets of Souq Waqif begin to fill with families, friends and visitors settling in for the evening.
YOUR NEWS, OUR NETWORK.
Do you have Great News you want to tell the world?
Be it updates about your business or your community, you can make sure that it’s heard by submitting your story to our network reaching hundreds of news sites across 6 verticals.