Hello, Readers!
Welcome to our in-depth guide on child tax credit (CTC) stimulus monthly payments. The CTC is a crucial tax break that helps families with the cost of raising children. This article will provide you with all the essential information you need to understand the CTC and how the monthly payments work.
What is the Child Tax Credit?
The CTC is a tax credit that reduces the amount of taxes you owe. It is available to families with children under the age of 17. The amount of the CTC depends on your income and the number of children you have.
How Do the Monthly Payments Work?
For the 2021 tax year, the CTC was expanded and made partially refundable. This means that even families with no tax liability could receive a payment. The IRS began sending out monthly payments of the CTC from July 15 to December 15, 2021.
The monthly payments were based on half of the total CTC amount that you were eligible for. The other half will be claimed when you file your 2021 tax return.
Eligibility for Monthly Payments
To be eligible for the CTC monthly payments, you must meet certain requirements, including:
Income Limits
2021:
- Single filers: Up to $75,000
- Married couples who file jointly: Up to $150,000
- Head of household filers: Up to $112,500
2022:
- Single filers: Up to $150,000
- Married couples who file jointly: Up to $300,000
- Head of household filers: Up to $225,000
Children
You must have a child under the age of 17 who meets the following requirements:
- Lives with you for at least half of the year
- Is a U.S. citizen or resident
- Is not claimed as a dependent on another person’s tax return
How to Get Your Monthly Payments
If you met the eligibility requirements, you should have received your monthly payments automatically. The IRS used the information from your 2019 or 2020 tax return (whichever was most recent) to determine your eligibility.
If you did not receive your payments, you can use the IRS’s Child Tax Credit Update Portal to track your payments or update your information.
Monthly Payment Schedule
The monthly payments were sent on the following dates:
- July 15, 2021
- August 13, 2021
- September 15, 2021
- October 15, 2021
- November 15, 2021
- December 15, 2021
Payment Amounts
The amount of your monthly payments depended on your income and the number of children you have. The following table shows the payment amounts for each scenario:
| Family Income | Number of Children | Amount of Monthly Payment |
|---|---|---|
| Under $75,000 | 1 child | $250 |
| Under $75,000 | 2 children | $500 |
| Under $75,000 | 3 children | $750 |
| $75,000 – $150,000 | 1 child | $250 (reduced) |
| $75,000 – $150,000 | 2 children | $500 (reduced) |
| $75,000 – $150,000 | 3 children | $750 (reduced) |
| Over $150,000 | 1 child | $0 |
| Over $150,000 | 2 children | $0 |
| Over $150,000 | 3 children | $0 |
Conclusion
The child tax credit stimulus monthly payments were a significant financial benefit for many families. They helped to offset the costs of raising children and provided much-needed relief during the COVID-19 pandemic.
If you have any questions about the CTC or the monthly payments, please visit the IRS website or contact a tax professional.
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FAQ about Child Tax Credit Stimulus Monthly Payment
What is the Child Tax Credit?
The Child Tax Credit (CTC) is a tax credit designed to help families with the cost of raising children.
How much is the CTC?
The CTC has recently been increased to $3,600 per child under age 6 and $3,000 per child ages 6-17.
Who is eligible for the CTC?
Most families with children who are U.S. citizens or residents are eligible. The income limits for the CTC are $150,000 for single filers and $200,000 for married couples filing jointly.
How do I claim the CTC?
You can claim the CTC when you file your tax return. You can also receive advanced payments of the CTC on a monthly basis.
How can I get the monthly payments?
You can enroll in the monthly payment program through the IRS website or by calling 1-800-908-4189.
When will I receive the monthly payments?
The monthly payments will be sent from July through December of 2021.
How much will I receive each month?
The monthly payment will be half of the CTC amount you are eligible for. For example, if you have two children under age 6, you will receive $300 per month.
What do I need to do to continue receiving the monthly payments?
You do not need to do anything to continue receiving the monthly payments. The IRS will automatically send you the payments as long as you remain eligible.
What if I stop being eligible for the CTC?
If you stop being eligible for the CTC, you will need to return any unused monthly payments to the IRS.
What if I have more questions?
You can visit the IRS website or call 1-800-908-4189 for more information.
