Congress increased the child tax credit for 2021 only to $3,000 for children ages 6 to 17 and $3,600 for children under age 6. Individuals earning less than $75,000 and married couples making less than $150,000 are eligible for the increased child tax credit.
If families earn more than the qualifying amounts, they will still be eligible for the regular $2,000 credit for their children if their income level is below $200,000 for individuals and $400,000 for married couples.
How it works
Families are expected to receive a monthly payment of $250 to $300 per child instead of the annual lump sum. Half of the credit will begin to be paid out by July 15. The IRS will continue to deliver monthly payments on the 15th of each month through December 2021.
The remaining half will be a credit toward next year’s taxes. If any amount is left after covering taxes will be paid directly.
Here’s a quick example:
A family with a 12-year-old and a 5-year-old would be eligible for a $6,600 credit if they earn under $150,000. They would receive a credit of $550/month through December, and then $3,300 when they file their taxes in 2022.
Feel free to check out this calculator from Omni to check how much money you can expect to receive.