If your little ones put a big dent in your budget, it’s time to enjoy an extra (tax) credit.
Thanks to Stimulus 3.0, taxpayers with dependents age 17 or younger may qualify for an expanded child tax credit in 2021. It’s worth up to $3,600 per kid (up from $2,000 in 2020). Half will be paid out in six monthly installments, starting next week. The other half comes in 2022, when you file your taxes.
It depends on the age and number of your dependents and your modified adjusted gross income. For every $1,000 you earn above the AGI limits (which we Skimm'd below), the extra amount above the original $2,000 credit decreases by $50. Use this calculator to crunch your own numbers.
Christmas came early for parents (and other taxpayers with dependents under 17) this year. Because thanks to the third stimulus package, the child tax credit got an upgrade for 2021. If you qualify, you’ll start receiving monthly payments in mid-July.
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Skimm'd by: Ivana Pino, Casey Bond, Stacy Rapacon, and Elyse Steinhaus