• Light/Dark
  • Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.

Happy Child Tax Credit Awareness Day! Get your CTC info here

discotheque

Member
Dec 23, 2019
3,858


Thanks to the American Rescue Plan, the IRS will begin sending out monthly payments to millions of parents in America starting this July! Wow! Here's what you need to know:

WILL MY FAMILY GET THE CREDIT?
Nearly all families with kids will qualify. Some income limitations apply. For example, only couples making less than $150,000 and single parents (also called Head of Household) making less than $112,500 will qualify for the additional 2021 Child Tax Credit amounts. Families with high incomes may receive a smaller credit or may not qualify for any credit at all. Unlike in previous years, there is no minimum income or employment requirement needed to receive the full benefit.
Click to expand...
Click to shrink...

HOW MUCH MONEY WILL MY FAMILY RECEIVE?
Most families will receive the full amount: $3,600 for each child under age 6 and $3,000 for each child ages 6 to 17. To get money to families sooner, the IRS will send families half of their 2021 Child Tax Credit as monthly payments of $300 per child under age 6 and $250 per child between the ages of 6 and 17.

This amount may vary by income. These people qualify for the full Child Tax Credit:
  • Married couples with income under $150,000
  • Families with a single parent (also called Head of Household) with income under $112,500
  • Everyone else with income under $75,000
These people will qualify for at least $2,000 of Child Tax Credit, which comes out to $166 per child each month:
  • Married couples with income under $400,000
  • Families with a single parent (also called Head of Household) with income under $200,000
  • Everyone else with income under $200,000

Families with even higher incomes may receive smaller amounts or no credit at all.

You can calculate exactly how much you'll receive here: https://www.kiplinger.com/taxes/602334/2021-child-tax-credit-calculator
Click to expand...
Click to shrink...

HOW DO I SIGN UP? WHAT IF I DIDN'T FILE TAXES?
If you've filed your 2019 or 2020 taxes, no further action should be required on your part. If you didn't make enough to be required to file taxes in 2020 or 2019, you can still get benefits by using the Non-Filer Signup Tool found here: https://www.whitehouse.gov/child-tax-credit/sign-up/
Click to expand...
Click to shrink...

HOW WILL THE MONTHLY PAYMENTS BE SENT TO ME?
  • The 80% who get their refunds from the IRS through direct deposit will get these payments in their bank account on the 15th of every month until the end of 2021.
  • People who don't use direct deposit will receive their payment by mail around the same time.
Click to expand...
Click to shrink...

WHEN WILL I BEGIN RECEIVING THE MONTHLY PAYMENTS?
People who receive payments by direct deposit will get their first payment on July 15, 2021. After that, payments will go out on the 15[SUP]th[/SUP] of every month. (In August the payment will go out on August 13[SUP]th[/SUP] since the 15[SUP]th[/SUP] falls on a weekend.) If you haven't provided the IRS with your bank account information on a recent tax return, a check will be sent out to you around the same time to the address the IRS has for you.
Click to expand...
Click to shrink...

More information can be found on the official White House CTC website: https://www.whitehouse.gov/child-tax-credit/

Hope everyone has a great CTC Awareness day this year! Remember to have fun, stay safe, and that not a single Republican voted for this!
 
Last edited:

Deleted member 4346

User requested account closure
Banned
Oct 25, 2017
8,976
This is a good thing and it's nice that they made it opt-out instead of opt-in. However I'd like to see it made permanent. Because getting 6 months of payments and then that benefit ending is going to be felt by a lot of families.
 
LanceX2

LanceX2

Member
Oct 25, 2017
6,820
Apharmd said:
This is a good thing and it's nice that they made it opt-out instead of opt-in. However I'd like to see it made permanent. Because getting 6 months of payments and then that benefit ending is going to be felt by a lot of families.
Click to expand...
Click to shrink...


The INCREASE needs to be permanent for sure. I like the 6 montha of payments for half but if they did that with the measly 2000 Id owe in tax season
 
Tbm24

Tbm24

Member
Oct 25, 2017
16,236
So to make sure I fully understand, the monthly payments are covering however much they increased the tax credit for, and come time to file my 2021 taxes, the child tax credit should be the same for me as my previous taxes? Or am I in for less?
 
grendelrt

grendelrt

Member
Oct 25, 2017
1,586
BringBackSonics said:
I got a letter from the IRS, saying I could opt out of automatic CTC payments. Is there any reason to do that whatsoever?
Click to expand...
Click to shrink...
From my understanding this uses your tax credit most people use at the end of year to offset their income taxes. So if you balance out or dont pay end of year taxes you could end up paying taxes if you take the credit throughout the year. I am trying to find more information on that myself now, I am thinking I want to opt out since I dont need the monthly payments currently and dont want to screw up my taxes and get a bill at the end of the year.
 
Futureman

Futureman

Member
Oct 26, 2017
9,400
grendelrt said:
From my understanding this uses your tax credit most people use at the end of year to offset their income taxes. So if you balance out or dont pay end of year taxes you could end up paying taxes if you take the credit throughout the year. I am trying to find more information on that myself now, I am thinking I want to opt out since I dont need the monthly payments currently and dont want to screw up my taxes and get a bill at the end of the year.
Click to expand...
Click to shrink...

BUT the credit increased this year so really we are just getting that increase in direct payments basically. So your "at tax time" credit should roughly be the same as in the past.

Please permanently extend this. Would help so much with daycare.
 
Walter White Walker

Walter White Walker

Member
Oct 27, 2017
21,518
$500 a month will be nice. I'm happy they extended this to teens age 17 as otherwise the CTC would have ended on my last tax return.
 
grendelrt

grendelrt

Member
Oct 25, 2017
1,586
Futureman said:
BUT the credit increased this year so really we are just getting that increase in direct payments basically. So your "at tax time" credit should roughly be the same as in the past.

Please permanently extend this. Would help so much with daycare.
Click to expand...
Click to shrink...
I thought the credit increase was only 20%. Its really confusing and hard to find info on how it all works with taxes at the end of the year.
 
Br3wnor

Br3wnor

Banned
Oct 27, 2017
4,982
Have they specified exactly what the phase out amounts are? We're at like 160 combined income as joint filers so just miss the 150 cutoff, do we know how quickly it scales down?

*Nevermind, found a calculator tool and the hit isn't that bad, well be getting most of the expanded credit at least
 
Bladelaw

Bladelaw

Member
Oct 25, 2017
7,699
One question I haven't seen answered (apologies if I missed it) is what happens if your kid turns 6 this year? My youngest is 5 turning 6 in November. So do we get the CTC for under 6 until November then it's over 6?
 
jroc74

jroc74

Member
Oct 27, 2017
28,992
Yup, been looking forward to this. Me and an Uber driver was just talking about this the other day.
 
OP
OP

discotheque

Member
Dec 23, 2019
3,858
Bladelaw said:
One question I haven't seen answered (apologies if I missed it) is what happens if your kid turns 6 this year? My youngest is 5 turning 6 in November. So do we get the CTC for under 6 until November then it's over 6?
Click to expand...
Click to shrink...
The IRS bases your child's eligibility on their age on Dec. 31, 2021, so 5-year-old children turning 6 in 2021 will qualify for a maximum of $250 per month. For both age groups, the rest of the payment will come with your 2021 tax refund when you claim the remainder of the tax credit in 2022. Here's how to calculate your family's total amount, including a monthly breakdown.
Click to expand...
Click to shrink...
www.cnet.com

December's payment could be the final child tax credit check. What to know

Only one child tax credit payment is left this year. We'll tell you when this payment will arrive and how to unenroll.
www.cnet.com www.cnet.com
 
Nairume

Nairume

SaGa Sage
Member
Oct 25, 2017
6,929
I didn't see anything on the site about it, but what if you have a kid born later in the year?
 
OP
OP

discotheque

Member
Dec 23, 2019
3,858
Nairume said:
I didn't see anything on the site about it, but what if you have a kid born later in the year?
Click to expand...
Click to shrink...
You can either receive all the money you're eligible for in a lump sum at the end of the year or use a web portal to inform the IRS that you want the monthly payments. The web portal will go live on July 1 apparently.
www.cnet.com

Parents of 2021 babies can claim child tax credit payments. Here's how

For families to get the full $3,600 benefit for newborns, they'll need to be patient and take a couple of extra steps.
www.cnet.com www.cnet.com
 
Plinko

Plinko

Member
Oct 28, 2017
18,564
This should be made permanent, but won't because Republicans will refuse to vote for it.
 
EYEL1NER

EYEL1NER

Member
Oct 26, 2017
3,774
Oh, that's good that the web portal for opting out isn't live yet. I've still got time to decide if I want to opt out and get it all at tax time next year or not. I figured it was getting down to the wire to make a decision but I've still got some time.
 
sgtnosboss

sgtnosboss

Member
Nov 9, 2017
4,786
I went to the sites, but I can't seem to figure out how to opt out? this is the credit I can get monthly or with tax return right? I would rather it be in the return I think. I may change my mind later though.
 
grendelrt

grendelrt

Member
Oct 25, 2017
1,586
sgtnosboss said:
I went to the sites, but I can't seem to figure out how to opt out? this is the credit I can get monthly or with tax return right? I would rather it be in the return I think. I may change my mind later though.
Click to expand...
Click to shrink...
There is supposed to be a website before July 1st to allow you opt out, I havent seen it yet though.
 
OP
OP

discotheque

Member
Dec 23, 2019
3,858
sgtnosboss said:
I went to the sites, but I can't seem to figure out how to opt out? this is the credit I can get monthly or with tax return right? I would rather it be in the return I think. I may change my mind later though.
Click to expand...
Click to shrink...
From the White House site:
Yes, you can opt out of monthly payments for any reason. To opt-out of the monthly payments, or unenroll, you can go to the IRS Child Tax Credit Update Portal in the coming weeks. If you do choose to not receive monthly payments, you'll get the full Child Tax Credit as a lump sum next year when you file your tax return.
Click to expand...
Click to shrink...
 
OP
OP

discotheque

Member
Dec 23, 2019
3,858
Shodan14 said:
My government just adds it automatically when you have a right to it.
Click to expand...
Click to shrink...
The IRS will do this automatically too for everyone who has filed taxes. The problem is that people with a very low income aren't required to file taxes, so they might fall through the cracks if they don't sign up using the website. CTC Awareness day was created to get the word out
 
Torpedo Vegas

Torpedo Vegas

Member
Oct 27, 2017
22,598
Parts Unknown.
Child tax credit you say.

Screen%2BShot%2B2016-08-17%2Bat%2B5.16.51%2BPM.png
 
Shodan14

Shodan14

Banned
Oct 30, 2017
9,410
discotheque said:
The IRS will do this automatically too for everyone who has filed taxes. The problem is that people with a very low income aren't required to file taxes, so they might fall through the cracks if they don't sign up using the website. CTC Awareness day was created to get the word out
Click to expand...
Click to shrink...
I see. I really like the Swedish model where everyone pays some token amount of tax so that they feel some ownership for how public funds are used. Also good practice for this kind of stuff.
 
OP
OP

discotheque

Member
Dec 23, 2019
3,858
Shodan14 said:
I see. I really like the Swedish model where everyone pays some token amount of tax so that they feel some ownership for how public funds are used. Also good practice for this kind of stuff.
Click to expand...
Click to shrink...

Yes, the Nordic countries are really amazing at this. Broad based taxes + a generous welfare state is the way to go. In Finland you even get a cute baby box full of clothes and diapers from the government.

original-products.jpg
 
Shodan14

Shodan14

Banned
Oct 30, 2017
9,410
discotheque said:
Yes, the Nordic countries are really amazing at this. Broad based taxes + a generous welfare state is the way to go. In Finland you even get a cute baby box full of clothes and diapers from the government.

original-products.jpg
Click to expand...
Click to shrink...
Yeah, it's really cool. Sad how few other countries are actually trying to do the baby box right, rather than opportunistic politicians getting a few extra votes for trinkets.
 
OP
OP

discotheque

Member
Dec 23, 2019
3,858
A note for Non-Filers: the Non-Filer tool the IRS provided is poorly designed and not mobile friendly. It might be easier to simply file your 2020 returns using a site like GetYourRefund.org

 
Euphoria

Euphoria

Member
Oct 25, 2017
9,514
Earth
HammerOfThor said:
Wait, if I qualify for this do I need to pay taxes on this next year?
Click to expand...
Click to shrink...

My understanding of it is like this and I'm going to use my own situation.

I have a 12 year old, so I will get $3,000/year for them. $1500 will come my way at tax time and the other $1500 will come from July-December.

If I opt out then in 2022 I will get $3,000 as part of my return.

If I don't opt out then I will get $1,500 as part of my return and not $3,000 because I took the other half from July-December.

Basically just like the Trump tax cuts it will no doubt catch people off guard next year.
 
Wally_Wall

Wally_Wall

Member
Oct 26, 2017
3,123
So I'll get less next year when I file or is this on top of what I will receive after I file next year?
 
TalonJH

TalonJH

Member
Oct 27, 2017
4,866
Louisville, KY
My wife and I filled separately with each of us claiming one of the two children. She's gotten her first letter but I still haven't. Hopefully I still get my deposit on the 15th.
 
Robochimp

Robochimp

Avenger
Oct 25, 2017
2,677
Wally_Wall said:
So I'll get less next year when I file or is this on top of what I will receive after I file next year?
Click to expand...
Click to shrink...

You'll get half the 2021 credit as a monthly payment for the remainder of this year and you'll get the other half of your 2021 credit when you file your 2021 taxes. So you will get less when you file because you've already been given half of the credit.
 
Robochimp

Robochimp

Avenger
Oct 25, 2017
2,677
You must log in or register to reply here.