Child tax credit 2021: will you have to repay? Use this IRS tool to verify

If you are not eligible for child tax credit payments, you will need to opt out by August 30.

Sarah Tew / CNET

Most qualifying American families will receive the next payment of the child tax credit next Friday, August 13. While many parents qualify for advance checks, many do not for several reasons. This year’s child tax credit program means parents could receive up to $ 300 per month, per child. But if you are not eligible and receive payment, you can refund part to IRS Next year. Fortunately, the IRS Eligibility Assistant tool makes it easy to verify. You can answer a few questions and then use the Child Tax Credit Update Portal to manage your information, payments, and opt out if necessary.

Withdraw is the best option for parents if their circumstances have changed and they are no longer eligible (a promotion is a good example). But even if you qualify, advance payments are optional and you can get the full amount during tax time. If you choose to unsubscribe, you will need to do so by Monday August 30 unsubscribe from the September check and others after. Keep in mind that these regular prepayments are not a tax deduction, but a real cash credit. You can use CNETs child tax credit calculator to get an estimated total if you haven’t already.

The IRS Online Tool is a good way to verify your eligibility online without having to call the IRS. You will need some personal information and an account with the IRS, you will need some time to create one using If you are eligible, you can use CNET child tax credit calculator to get an estimated total if you haven’t already. We have updated this story.

How do I qualify for 2021 child tax credit payments?

Parents can benefit from full Child tax credit payments if they meet any of the following rules outlined by the IRS.

  • $ 150,000 in total earned income if married and filing jointly
  • $ 112,500 in income earned in the event of declaration as the head of the family
  • $ 75,000 in earned income if you deposit a single person

If parents meet these income requirements, each dependent under age 6 can receive up to $ 300 per month until December and the other half during tax season 2022, for a total of $ 3,600. Children ages 6 to 17 can earn up to $ 250 per month and up to $ 3,000 in total. Parents of dependents between the ages of 18 and 24 will have to wait until tax time to get the full amount.

If you earn more than the required income, you may still receive early child tax credit payments, but less than the maximum amount. The IRS subtracts $ 50 from each advance check for every $ 1,000 earned above the income limit. So if you earn $ 85,000 as a sole filer, you could be entitled to up to $ 200 per month, depending on the age of your child.

There are a few others eligibility conditions for dependents remember:

  • Must be a U.S. citizen
  • Must be under 17 before the last day of the tax year
  • Must be claimed on the parents’ income tax return

How do I check my eligibility for the child tax credit online?

Before you begin, make sure you have a copy of your 2020 income tax return, or your 2019 income tax return if you have not yet filed your taxes this year (for example, if you have filed an extension). If you don’t have a tax return on hand, you can use your filing status and the number of children you have claimed, as well as an estimate of your total income for 2020.

You can use the IRS Eligibility Assistant to answer a few quick questions. If you qualify, you will use your income tax return and the Child Tax Credit Update Portal to see if you are registered for payments. You can also opt out, even if you are not eligible, but have received your first check.

Once you’ve determined what your income was for 2020 or 2019, you can check your eligibility. Here’s how.

1. Go to Eligibility assistant for the advance child tax credit Tool page on the IRS website.

2. Tap or click Check your eligibility.

3. You will then need to answer a few questions about yourself and your taxes. For example, the form will ask if you claimed the child tax credit on a previous tax return.

4. You may need to provide additional information, depending on how you answered the questions. This is where you fill in your filing status, adjusted gross income, and the number of children you reported on your tax return (along with their ages).

5. After knocking Next, the tool will let you know if you qualify based on the answers you provided. It will tell you how much each child under 6 qualifies you for and what amount each child 6 and over qualifies you for. It will also show you the details of the income phase-out.

6. From there, tap or click Manage your advance payments of the child tax credit, which will take you to child tax credit portal which allows you unsubscribe from monthly payments if you prefer to receive one large check instead of several smaller ones, or submit your information if you are not a registrant.

Keep in mind that the Eligibility Assistant tool and the Child Tax Credit Update Portal not tell you how much you are entitled to. The tool also doesn’t tell you:

  • The personalized total you will get from the child tax credit payment. He leaves it up to you to do the math.
  • How much will the payments be reduced if your income exceeds the limit.
  • All child tax credit payment dates.
  • Only one parent can claim the money for a particular child in a shared custody situation.

You can find answers to most of these questions in our Child tax credit faq.

What if parents no longer qualify for child tax credit audits?

If you are not sure whether or not you qualify based on the requirements, confirm with the Eligibility Assistant tool and update your information using the Child Tax Credit Update Portal. Currently, you can use the portal to update your banking information and opt out of this year’s advance payments. This month you will be able to update your mailing address. You should be able to update your income and dependents by next month.

As a safety measure, you can also opt out and get a lump sum during tax season next year. The deadline for opting out of the August payment has passed, but there is still time to opt out of future payments. The next unsubscribe deadline is Monday August 30th., but you can unsubscribe anytime by December if your situation changes.

$ 300 cash with calculator

Dependents, aged 18 to 24, can claim the full amount of the child tax credit during the tax period next year.

Sarah Tew / CNET

Are new parents eligible for child tax credit payments?

If you adopt or have a baby during 2021, you will need to update your information in the IRS Update Portal once this feature becomes available at the end of summer. When the agency has your updated information on file, you can receive future payments. For example, if your baby was born on September 20, you might start receiving advance payments in October. You will have to wait until 2022 to get the July, August, and September payments retroactively.

If your baby was born in December 2021, you can claim the money you didn’t receive from July through December when you file your taxes next year. If you have a newborn baby in January 2022, you will not be entitled to the highest amount of money that was approved in the US bailout, but you may be eligible for the initial amount, unless the enhanced child tax credit not be extended.

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