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blu6385
Member since 5/08 8351 total posts
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New Child tax Credit - can someone explain
Can someone explain to me how it works or let me know if i understand this correctly?
As I understand it this is just a higher amount of an already CTC that exists.
And now you can get payments monthly throughout the year rather than waiting to the end to claim it?
Is that correct?
Or is the monthly payments additional to what you usually claim at the end of the year?
Last question if it’s not additional and it is what you claim at the end of the year can you opt out of not getting it monthly and just wait till the end of the year to get it?
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Posted 3/9/21 1:11 PM  |
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BFNY516
LIF Adult
Member since 7/20 1189 total posts
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New Child tax Credit - can someone explain
So someone correct me if I’m wrong but starting in July, regardless of income, there is a monthly child tax credit that is not capped by income so anyone with a child under 18 will get $300 a month. And it’s likely permanent because it’s a change to the tax code.
That’s what I gathered so far and again, anyone feel free to correct me.
Message edited 3/9/2021 4:24:49 PM.
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| Posted 3/9/21 4:24 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
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Re: New Child tax Credit - can someone explain
Forbes does a good job of summarizing the credit. Link to Forbes
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| Posted 3/9/21 6:28 PM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: New Child tax Credit - can someone explain
Posted by CookiePuss
Forbes does a good job of summarizing the credit. Link to Forbes
Thanks so it sounds like what I wrote is correct and you don’t have to get it monthly though it looks like I probably won’t be qualifying for the new amount or at least not all of it  and I’m no where near well off at all. I love to know where they come up with these cut off numbers! I’m over them!
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| Posted 3/9/21 6:49 PM |
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Momma2015
Mommax2
Member since 12/12 6655 total posts
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Re: New Child tax Credit - can someone explain
I saw this little calculator, thought it might help!
Link.
ETA: When I did the calculator- I'd get $600 a month and then a certain $ amount when I did my taxes as well. Not sure if that's only for this year since it's going into effect halfway through the year or if it's every year, provided they make it permanent.
Message edited 3/10/2021 7:50:36 PM.
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| Posted 3/10/21 7:48 PM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: New Child tax Credit - can someone explain
Posted by Momma2015
I saw this little calculator, thought it might help!
Link.
ETA: When I did the calculator- I'd get $600 a month and then a certain $ amount when I did my taxes as well. Not sure if that's only for this year since it's going into effect halfway through the year or if it's every year, provided they make it permanent.
Thanks for this. Looks like I will get some but not all of it.
I will Make sure I opt out or not opt in however it’s being handled. I rather just get it at the end of the year.
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| Posted 3/11/21 2:00 AM |
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LuckyStar
LIF Adult
Member since 7/14 7273 total posts
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Re: New Child tax Credit - can someone explain
Posted by BFNY516
So someone correct me if I’m wrong but starting in July, regardless of income, there is a monthly child tax credit that is not capped by income so anyone with a child under 18 will get $300 a month. And it’s likely permanent because it’s a change to the tax code.
That’s what I gathered so far and again, anyone feel free to correct me.
I don’t think this is true. I used one of the calculators and it looks like I would receive $167 a month for 1 child. So essentially the standard $2k child tax credit.
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| Posted 3/13/21 3:19 AM |
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blu6385
Member since 5/08 8351 total posts
Name:
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Re: New Child tax Credit - can someone explain
Posted by LuckyStar
Posted by BFNY516
So someone correct me if I’m wrong but starting in July, regardless of income, there is a monthly child tax credit that is not capped by income so anyone with a child under 18 will get $300 a month. And it’s likely permanent because it’s a change to the tax code.
That’s what I gathered so far and again, anyone feel free to correct me.
I don’t think this is true. I used one of the calculators and it looks like I would receive $167 a month for 1 child. So essentially the standard $2k child tax credit.
If you use the one linked above it will tell you how much money you would get monthly and how much at the end of the year and also tells you how much more your getting compared to what you use to get.
But yes there is an income cap on the extra money added to the credit basically follows the stimulus payment caps except that the max amount of money is higher
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| Posted 3/13/21 3:34 AM |
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Mrs213
????????
Member since 2/09 18986 total posts
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Re: New Child tax Credit - can someone explain
Posted by BFNY516
So someone correct me if I’m wrong but starting in July, regardless of income, there is a monthly child tax credit that is not capped by income so anyone with a child under 18 will get $300 a month. And it’s likely permanent because it’s a change to the tax code.
That’s what I gathered so far and again, anyone feel free to correct me.
I'm not sure if it's permanent because everything I've read seems to say it's July to December of this year. I did the calculator and they are saying its $500/month for me. I think this is really going to benefit many lower income families that are barely scraping by...
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| Posted 3/13/21 12:15 PM |
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