Houston – Starting this summer, the federal government is sending money to parents with children as part of the expanded child tax credit.
The child tax credit is not new. Parents can claim a $2,000 credit per child when they file their taxes. What is new this year, is that the credit is much higher for certain families and you don’t have to wait until you file your 2021 taxes to get it.
What you need to know:
- The first payments to parents will go out on July 15. They will continue every month through December 2021.
- You will receive the second half of what you are owed in April 2022 when you file your taxes.
How much you receive depends on the ages of your children and how much you make - your adjusted gross income.
- Parents of children ages 5 and under can get $3600 per child.
- Parents with children ages 6 to 17 can qualify to receive up to 3,000 per child.
- For each 18-year-old and full-time college student between the ages of 19 and 24, parents can get up to $500.
- You only get the full amount if you are: A) single and making $75,000 a year or less, B) the head of household making $112,500 or C) married filing jointly making $150,000 or less.
- The full monthly payment will be $300 per child 5 and under or $250 per child 6 to 17 years old.
You need to file your 2020 taxes to get the credit if you’re a nonfiler. The IRS will automatically make the payments for those who have their taxes filed by the May 17 tax deadline.
People who make more money, up to $440,000 for a married couple filing jointly, will also get the payments, but they will be the same $2000 per child as in years past. Keep in mind that if you receive this money now, you won’t see the benefit of a lower tax bill or a bigger refund at tax time when you file in 2022.