Child Tax Credit Payment Calculator

The tax credits are a valuable part of the US tax system that reduces the tax owed by taxpayers. One of the most worthy tax credits – if not the most – is the child tax credit. This tax credit has helped millions of families reduce their tax liability. Ever since it was introduced in 1998 with the Taxpayer Relief Act, the child tax credit has become a prevalent part of the tax system. 

The child tax credit went through multiple changes since it was first introduced. Perhaps the biggest boost came to the child tax credit over the last couple of years. The Tax Cuts and Jobs Act of 2017 doubled the tax credit, increasing the refundable portion of it and the Biden administration increased it significantly while making the credit fully refundable. 

Increased CTC amounts

The child tax credit is now $3,000 for children between the ages of 6 and 18. The credit is now available for children aged 18.

The amount is increased for children under the age of 6 to $3,600, while remaining fully refundable.  

Advanced child tax credit payments

Since the child tax credit is now at a very large amount, it isn’t a surprise for the government to send out advanced payments. It also makes sense as covering a child’s expenses grows every year. The Internal Revenue Service rolled out the first advanced child tax credit payments in August. The payment amount is $250 per school-aged child and $350 per child under 6. 

Calculate your advanced child tax credit payment

Taxpayers can calculate their advanced child tax credit payment by figuring out their deserved child tax credit, then taking out half of the credit amount and spreading it over five months. 

For example, for taxpayers that deserve the full amount of the credit, $3,000 and $3,600, respectively. The income limits apply over $75,000 for single filers, $150,000 for married couples filing a joint return, and $112,500 for heads of households.

If your modified adjusted gross income is above the threshold, the credit will get smaller until it completely phases out at $240,000 for single filers and heads of households and $440,000 for married filing jointly.

After figuring out how much you’re eligible to claim in child tax credit, you can then divide it by two and spread the amount left over a five-month period. You will receive the advanced child tax credit payments in August, September, October, November, and December.  

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