How Much Will My Payment Be With the Child Tax Credit Calculator?
On Thursday, millions of families will get the first installment of the enhanced Child Tax Credit. According to the IRS and Treasury Department, up to 39 million U.S. households are expected to get the benefit, which covers roughly 90 percent of children in the country, according to the White House. President Joe Biden signed the increased Child Tax Credit into law as part of the American Rescue Plan in March. The credit was raised from $2,000 to $3,600 every kid under the age of six, or $3,000 per child from six to seventeen. Starting in July and continuing through December, half of the benefit will be divided into six monthly payments of $250 or $300. Unless the 15th of the month falls on a weekend or holiday, the cash will be sent out on that date. The remaining Child Tax Credit can be claimed on tax returns filed in 2021. Families also have the option of opting out of the monthly program and obtaining the full benefit in 2022. A single parent with an annual income of $112,500 or less is eligible for the full benefits. To obtain the maximum amount, joint tax filers must have an income cap of $150,000. Families earning more than specified amounts will receive a lower payout. According to the IRS, the first phaseout can erase the $1,600 increase for qualified children under the age of six, as well as the $1,000 increase for children aged six to seventeen. If an individual earns more than $200,000, the Kid Tax Credit will be lowered to less than $2,000 per child. If a married couples or joint filers reported income is less than $400,000, the credit will be reduced to less than $2,000 for married couples and joint filers. The Child Tax Credit is reduced by $50 for every $1,000 earned beyond certain income criteria in the second phaseout. A persons most recent tax return and adjusted gross income are used to calculate payments. A taxpayers AGI can be calculated by combining all of their income and deducting allowed deductions, or by glancing at their most recent tax returns Form 1040. Kilpinger, a producer of business forecasts and personal finance advice, has produced a Child Tax Credit calculator with this information. H&R Block is one of these financial institutions. This is a condensed version of the information.