Pub. 3 2021 Issue 4

15 nebraska society of cpas W W W . N E S C P A . O R G Example: If your client qualified for a $3,000 child tax credit for their 10-year-old child, they would receive six $250 payments between July andDecember, for a total of $1,500. Then, theywould claimthe remaining $1,500 on a reconciliation sheet, not yet released, on their 2021 tax return filed in the 2022 tax season. Maximum Tax Credit, by Dependent Age The Child Tax Credit payments are as much as: • $3,000 per child for children between ages six and 17 years old. • $3,600 per child for children under six years old. NOTE: All working families will receive the full credit if they make less than $150,000 for married filing jointly, less than $112,500 for head of household, and $75,000 for single ormarried filing separate. • For every child between ages six and 17 years old, families will receive $250 each month for each of the children. • For every child under six years old, families will receive $300 each month in advance. What's my client's timeline for the advance payments? NOTE: 80% of the taxpayers who asked for their refunds to be direct deposited will receive these payments in their bank account on the 15th of the month until the end of 2021. People who don't use direct deposit will receive their monthly payment by mail around the same time, mid-month. See the chart below for more information. Timeline for Child Tax Credit Payments Useful FAQs Q: How can my client receive the benefit if their child was born in 2021 or if they gained custody of a child in 2021? A: The IRS created the Child Tax Credit Update Portal, where families can tell the IRS about children born in 2021 or changes in child custody. If your client has a baby in 2021, their newborn will count toward the CTC payment. Source: White House Fact Sheet Source: White House Fact Sheet Monthly Maximum Payment (Newborn to Age 5) Maximum Payment (Ages 6 to 17) Maximum Payment (Ages 18-24) July 15, 2021 First Payment of the Year $300 $250 -- August 13, 2021 $300 $250 -- September 15, 2021 $300 $250 -- October 15, 2021 $300 $250 -- November 15, 2021 $300 $250 -- December 15, 2021 Last Payment of the Year $300 $250 -- April 2022 Second Half of Payment $1,800 $1,500 $500