IRS: File taxes now to receive Child Tax Credit payments

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(WCMH) — The IRS is encouraging Americans to file their 2020 tax returns as soon as possible to make sure they receive the appropriate amount in Child Tax Credit advance payments.

According to an information page recently published by the IRS, advance payments of the 2021 Child Tax Credit will be made regularly from July through December to eligible taxpayers who have a main home in the United States for more than half the year. The total will be up to 50% of the credit, estimated from information in taxpayers’ 2020 tax returns. 2019 tax returns will be used if 2020 is not filed yet.

If you haven’t filed for either year, the IRS is urging people with children to file 2020 tax returns as soon as possible to make sure they’re eligible for the appropriate amount, as well as other tax credits they could be eligible for. Other than filing tax returns, no other action is needed.

The filing deadline for 2020 taxes is May 17, 2021. Filing for an extension extends that deadline to October 15.

Child Tax Credit Payment Calculator

Use the calculator below to estimate how much you might receive in child tax credit periodic payments beginning in July, 2021

Who qualifies for the expanded child tax credit?

Eligibility is determined based on Adjusted Gross Income (AGI), the amount of income reported after deductions are made.

  • Single filer — Phase-out begins at an AGI of above $75,000
  • Head of household — Phase-out begins at an AGI of $112,500
  • Couple filing jointly — Phase-out begins at an AGI of above $150,000
  • Child age 5 and younger — Max credit of $3,600 each
  • Child age 6-17 — Max credit of $3,000 each
  • Phase-out — The maximum value of the tax credit reduces by $50 for every $1,000 in income above the AGI limit.

The IRS will give eligible taxpayers who do not want to receive advance payments an opportunity to decline.

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