Parents can get as much as $3,600 per kid for the 2021-2022 period, whether it be in monthly installments or one big payout.
Sarah Tew/CNET

The IRS announced an official July 15 start date for the updated child tax credit established in the American Rescue Plan. But families may still be unsure how much they will receive given the varying age and income requirements. To help you figure it all out, use our calculator below for a quick estimate before the payments arrive.

If you have any changes in your household income or number of dependents, make sure to let the IRS know so you get the right amount. Two IRS web portals will be available by July 1 for you to update your personal information or opt out of the partial monthly payments if you would rather receive the total amount in a single payment next year.

We’re still waiting to know whether the enhanced child tax credit will be extended beyond 2022. But we’ll explain what we know below, including what nonfilers need to do to get the child tax credit money. As a parent, you might be interested in another credit that lets you claim up to $16,000 for child care expenses. Here’s more on a possible fourth stimulus check and what’s happening with states eliminating unemployment benefits early. We update this story frequently.

How to calculate your child tax credit payments

Enter your adjusted gross income and number of dependents below to calculate your payment. (Our calculator will not store or use your data.) The results you get are based on our current knowledge of the law and should be treated as broad estimates only; the IRS will determine the final amount. We suggest consulting a financial professional for a more personalized estimate.

The child tax credit math is complicated, but we’ll explain: For parents of eligible children up to age five, the IRS will pay a total of $3,600, half as six monthly payments and half as a 2021 tax credit. For each child ages 6 through 17, that total changes to $3,000. The IRS will make a one-time payment of $500 for dependents age 18 or full-time college students up through age 24.

If your AGI is $75,000 or less as a single filer, $112,500 as a head of household or $150,000 filing jointly, you’ll get the full amount. If your income is higher than the limit for your filing status, your child tax credit payments will begin to phase out by $50 for every $1,000 of income over the threshold.

Child tax credit payment schedule, including advance monthly payments

Here’s how the advance child tax credit payments will arrive, starting July 15 through 2022. The chart shows the maximum payment amount, but you may qualify for less. (Note the Aug. 16 date is because Aug. 15 falls on a Sunday.)

For an 18-year-old dependent, as well as for full-time college students ages 19 to 24, you will not receive monthly payments but rather one payment when you file your tax return in 2022.

Timeline for the child tax credit payments

Monthly

Maximum payment (newborn to 5)

Maximum payment (6 to 17)

Maximum payment (18 to 24)

July 15, 2021: First payment of the year

$300

$250

–

Aug. 16, 2021

$300

$250

–

Sept. 15, 2021

$300

$250

–

Oct. 15, 2021

$300

$250

–

Nov. 15, 2021

$300

$250

–

Dec. 15, 2021: Last payment of the year

$300

$250

–

April 2022: Second half of payment

$1,800

$1,500

$500

What about those who don’t normally file a tax return?

The IRS will automatically make the payments for those who filed taxes by the May 17 tax deadline, according to IRS Commissioner Charles Rettig. So if you didn’t submit your tax return, the IRS won’t know to send you a payment (and also won’t know if you’ve gained dependents since the last tax filing).

If you are a nonfiler and didn’t file a tax return this year, the IRS will make a portal available before July to help you. The portal is expected to let tax nonfilers submit a simplified electronic form to let the IRS know how many kids they have and their ages — including babies born in 2020 and 2021 — so they can get the correct payment amount. You can also submit a tax return now if you don’t want to wait for the portal.

What about opting out of the monthly child tax credit payments?

If you’d rather get your 2021 child tax credit money as one large payment, you’ll be able to opt out of monthly payments once the IRS opens its online portals by July 1.

One portal will allow families to tell the IRS they want to receive the benefit in full at tax time at the end of the year rather than on a monthly basis. Opting out would mean that instead of receiving $300 per month for your 3-year-old (and the remainder of your money in 2022, for example), you wait until you file your taxes in 2022 to claim the full $3,600.

Another portal will help you input other information, like if your AGI or marital status changed.

Babies born this year can be eligible for the full $3,600.
Sarah Tew/CNET

What do new parents need to know?

Children born in 2021 make you eligible for the 2021 tax credit of $3,600 per child. (That’s up to $7,200 for twins.) That’s on top of payments for any other qualified child dependents you claim. Here’s our guide for parents of 2021 babies, including what parents of adopted infants should know.

What if a child ages out of a payment bracket this year?

If you have a 5-year-old turning 6 by the end of the year, the total payment amount you could get for that child is $3,000. If you have a 17-year-old who turns 18 before the end of the year, you would receive $500 total for that dependent instead of $3,000. If you have a dependent who is a full-time college student and turns 25 this year, you won’t receive any payment for them.

What are the requirements for dependents?

There are some specific rules regarding qualifications not just for parents and caregivers, but for the children, too. Here’s what to know about dependent qualifications for the child tax credit. You should also see if you’re eligible for a child care tax credit if you paid for daycare, an after-school program or a babysitter.

What if the IRS accidentally sends a higher amount?

Your family’s eligibility is determined in large part by your adjusted gross income. So what happens if you get a new job or start making more money in 2021? What happens if the payments have already gone out and you spent the money?

The IRS has a plan for this: It’s the child tax credit portal the agency will make available by July 1 so you can update your information. If you need to make an adjustment, it will lower the payment amounts you’d receive if your new income reaches the phaseout level, according to Garrett Watson, a senior policy analyst at Tax Foundation.

If you wait until 2022 to update your information when you file your taxes and you continue to receive the full amount based on your lower income, you would have to return the excess money on your 2021 tax return next spring, or else accept a smaller 2021 refund or owe more in taxes.