Child Tax Credit for 2021

[Ephesians3-14]

Sorry to be such a dope and have a really easy question....but is the 2021 child tax credit $3,600 for kids 5 and younger and $3,000 for kids 6 -17 yrs old? The current release of the 2021 software shows $2,000 per child. I know, I know...it's still early and the final version of the 2021 software isn't out until late tax season, but I just wanted to make sure I wasn't losing my mind. (Probably am though).

[Ephesians3-14 · Accepted solution]

For 2021 only, the child tax credit amount was increased from $2,000 for each child age 16 or younger to $3,600 per child for kids who are 5 years old or younger and $3,000 per child for kids 6 to 17 years of age.

For the advance child tax credit, if you received your first payment in July, that means the maximum monthly payment for each child under age 6 was $300 and $250 for each child age 6 to 17.

The Child Tax Credit phases out in two different steps based on your modified adjusted gross income (AGI) in 2021.

The first phaseout can reduce the Child Tax Credit down to $2,000 per child.

• That is, the first phaseout step can reduce only the $1,600 increase for qualifying children ages 5 and under, and the $1,000 increase for qualifying children ages 6 through 17, at the end of 2021.

The Child Tax Credit begins to be reduced down to $2,000 per child if your modified AGI in 2021 exceeds:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 if you are a single filer or are married and filing a separate return.

The first phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

The second phaseout can reduce the remaining Child Tax Credit below $2,000 per child.

The Child Tax Credit won’t begin to be reduced below $2,000 per child until your modified AGI in 2021 exceeds:

• $400,000 if married and filing a joint return; or
• $200,000 for all other filing statuses.

The second phaseout reduces the Child Tax Credit by $50 for each $1,000 (or fraction thereof) by which your modified AGI exceeds the income threshold described above that is applicable to you.

[PATAX]

Up to $3,000 per child. $3,600 if under age 6. Refundable for most taxpayers. Quickfinder has excellent section on this. Just my opinion

[PATAX]

Wow that is a good idea... Ask a question and then Immediately answer it yourself  .... I think I'm going to keep doing that Non-Stop, until I have the most answers accepted as solutions on Pro Series, and thereby becoming King Of Pro Series, and usurping the Crown of Iron Man...😉🤴

[ckboland1952]

Schedule 8812 makes reference to a worksheet for Line 5 but I have not been able to find/print that worksheet.  Very confusing without it.