As the third stimulus check rolls out, there are new rules to be implemented about the monetary credit given to each qualifying citizen. Computing for the money you are entitled to is hard, but it gets even more confusing with the revised child tax credit. Luckily, online calculators have been developed to help you quickly and accurately calculate how much money you should receive.
The IRS and Treasury have not completely decided the child tax credit payment schedule, so you could be waiting for money that could be coming in by next week or next year. However, some variables have been identified that can help you get a rough estimate of how much money child dependents can receive. Look out for these indicators because they would determine if you are entitled to receive full monetary payment support or only half of the estimate.
Child Tax Payment Schedule
Cnet reported that you should start receiving child tax credit payments in the first half of the money this year and the other half by next year. The American Rescue Plan estimates that it could start in July and that IRS will provide additional information needed about the child tax credit as soon as possible. Dependent children are roughly entitled to $3600 to $500 depending on the circumstances of their guardian.
Also, note that the child tax credit payments are a temporary one-piece solution of Washington to help families, individuals and dependents to overcome the ongoing pandemic. This is a temporary fix that could remain a one-time deal after the first payment has been released. Also, make sure that your tax returns are updated so that IRS can release to you the proper stimulus check payment you are supposed to receive.
Online Child Tax Credit Calculator
The money is credited based on the adjusted gross income (AGI) of the filer--being less than $75,000 for singles, $112,500 for head of household, and $150,000 for joint filing between spouses. For filers who have dependent children but have income higher than these indicators, the credit payment would start to phase out by $50 for every $1000 beyond the threshold.
To use the online child tax credit calculator, head over to Cnet's website and scroll down. Provide your information such as your filing status, adjusted gross income, number of children under age 5 by December 31, 2021, and number of children between ages 6 to 17 by December 31, 2021.
Note that if your 5-year-old child turns 6 by the end of the year, the child is only entitled to $3000 maximum. If your 17-year-old child turns 18 before the year ends, you will receive $500 instead of $3000.
The current calculation is computed using the laws and rules implemented by the IRS released up to date. The values might change without prior notice depending if IRS decides to create new regulations for the stimulus checks distribution. This calculator could only provide you an estimate and an idea of how much money you should expect from your released stimulus payment.
Related Article: Stimulus Check Tracker for Your $1,400 Payment: How to Use IRS Online Portal, Requirements and More