When Will Child Tax Credit Payments Start Again?

Raising kids ain’t cheap; add inflation to the mix and it’s a massive stress on your wallet. But there could be bigger Child Tax Credit payments on the way to lighten your load.

We have the Student Loan Forgiveness Plan, and some states have a fourth stimulus check, but what about family relief?

In 2021, families got payments of up to $3,600 through Child Tax Credit payouts as part of the American Rescue Plan. A new congressional bill in the works could bring those Child Tax Credit payments back — this time with more cash per kid.

Yeah, there’s more money, but there are also more stipulations and steps involved before you can cash a check. Here’s what you need to know:

 

What are Child Tax Credit payments?

A Child Tax Credit is basically a tax coupon for kids who live with you. Most of the time, you never actually get it paid to you; it takes away from the amount of taxes you’d have to pay each year.

But in the 2021 tax year, the government made some of the Child Tax Credit available to families in the form of monthly payouts. If you’re a parent, you likely received up to $3,600 in 2021 from Child Tax Credit payments.

 

You could receive up to $4,200 per child with the proposed Child Tax Credit payments.

The proposed Family Security Act 2.0 would do the same thing as the 2021 Child Tax Credit payments — but would be up to $600 more (for a total of $4,200 per child).

The 2021 American Rescue Plan Child Tax payments were as much as $3,600 per child under age six and $3,000 per child ages 6 – 17.

Should the Family Security Act 2.0 pass, households would get up to $4,200 per child under age six and $3,000 per child ages 6 – 17. Households would only be able to claim up to six children.

 

You’d get monthly payments per kid — up to $350.

In 2021 the Child Tax Credit under The American Rescue Plan was paid out in monthly installments, and the other half of the credit was applied when filing 2021 taxes.

For the latest proposal, households could choose between one single payment or monthly payments for the entire amount of the Child Tax Credit — paid out over a year.

The American Rescue Plan offered:

• $300/month per child under six
• $250/month per child ages 6 – 17

The Family Security Act 2.0 offers:

• $350/month per child under six
• $250/month per child 6 – 17

The 2021 Child Tax Credit was sent via the direct deposit account you had on file with the IRS, or they mailed you a check, so the new credit would probably be paid the same way.

 

 

Expectant parents would get payments for up to four months of pregnancy.

The Family Security Act 2.0 not only ups the price per child for the Child Tax Credit, but expectant parents would get some funds, too.

Expectant parents could start receiving payments four months before their child is born. They’d get $700 per month for up to $2,800 per pregnancy.

TIP: For money relief and advice on how to make life while parenting easier, you’ll want to bookmark our Family Tips page.

 

You’ll get less if you make under $10,000 or over $200,000.

So to get the full benefit, you have to make between $10,000 – $200,000.

If you make less than the $10,000 minimum threshold, you’ll get a percentage of the full Child Tax Credit:

• If you made $5,000 and had a kid under six, you’d be making 50% of the $10,000 threshold, so you’d get 50% of the Child Tax Credit — $2,100.
• Or if you made $9,000, that’s 90% of the $10,000, meaning you’d get $3,780.

And for higher-wage earners, your benefit will be reduced $50 for every $1,000 you made over $200,000:

• A single-filer who made $250,000 would see their Child Tax Credits reduced by $250, totaling $3,950.
• Income earners of $284,000 or more would receive no payment.

TIP: If the Family Security Act 2.0 is structured like the American Rescue Plan, you’ll be able to opt out of the payments and instead receive the Child Tax Credit as just that — a credit toward your tax payable.

 

The Senate needs 60 votes to make the new Child Tax Credit payments happen.

The Democrats and the Republicans aren’t the best friends, so it may take some time to get on the same page, but we should know something by tax time.

 

 

Meanwhile, your state may be offering Child Tax Credit payments.

For the new Child Tax Credit payments proposal to get approved, it would need to get 60 votes from the Senate. While we wait to see what lawmakers will do, make sure you don’t miss out on the Child Tax Credits in 12 states; most of these are traditional tax credits, not stimulus payments.

 

California

You can get up to $1,000 from the Young Child Tax Credit if you live in California.

Requirements:

• California resident
• Eligible for the Earned Income Tax Credit
• Have a child under six
• There is no earnings minimum or maximum

Note: This is a permanent credit, meaning there’s no end date — you’ll get this credit every year. The credit amount is adjusted yearly to keep up with inflation.

 

Colorado

You can get a refundable credit of $600 in Colorado.

Requirements:

• California resident
• Have a child under six
• You must make no more than $75,000 ($85,000 for married taxpayers filing jointly)

Note: The credit will be available to qualifying families in January 2023. This credit will be available every year.

Connecticut

The Connecticut Child Tax Rebate offers rebates up to $250 per child (covering up to three kids, $750 maximum rebates).

Requirements:

• Connecticut resident
• Have a child under 19
• Have claimed at least one child as a dependent on your 2021 tax return
• You must make $100,000 or less ($200,000 or less if married and filing jointly)

 

Idaho

In 2018 Idaho added nonrefundable dependent credits worth $205 to their tax codes (through January 2026).

Requirements:

• Idaho resident
• Have a child under 17

 

Maine

In 2018, Maine also added nonrefundable dependent credits worth $300 per child to their tax codes.

Requirements:

• Maine resident
• Have a child under 17

 

Massachusetts

In Massachusetts, you can get the household dependent tax credit for $180 per dependent and $360 for two or more.

Requirements:

• Massachusetts resident
• Have dependents who must be under the age of 12 or over 65
• Taxpayers can choose between this credit or the dependent care tax credit

Note: You can get these credits and the standard dependent deduction (the amount that you can deduct from taxes). This is credit is available every year.

New Jersey

New Jersey has a Child Tax Credit that grants up to $500 per child.

Requirements:

• New Jersey resident
• Have a child under six
• Income under $30,000 gets $500, under $40,000 gets $400, under $50,000 gets $300, under $60,000 gets $200

Note: This credit will be available every year.

 

New Mexico

New Mexico offers a maximum tax credit of up to $175 for each child (through the end of 2026).

Requirements:

• New Mexico resident
• Have a child under 17

 

New York

New York has a refundable credit worth $330 per child or 33% percent of the federal credit you got in 2021— whichever amounts to more.

Requirements:

• New York resident
• Qualified for federal Child Tax Credit
• Have a child under 17 or over four

Note: This credit will be available every year.

Oklahoma

If you live in Oklahoma, you can get 5% of the federal Child Tax Credit. So if you got the $3,600 Child Tax Credit, you’d get $180.

Requirements:

• Oklahoma resident
• Have a child under 17
• You must make under $100,000

Note: This credit will be available every year.

 

Rhode Island

Rhode Island issued one-time tax rebates of up to $250 per child (maximum $750, up to three kids).

Requirements:

• Rhode Island resident
• Have a child under 19
• You must make $100,000 or less ($200,000 or less if married and filing jointly)

Note: Payments will go out October 2022 if you filed your taxes by Aug. 31, 2022. If you file by Oct. 17, 2022, then your payments will go out December 2022.

 

Vermont

Vermont’s child tax credit caps at $1,000 per child

• Vermont resident
• Have a child under five
• You must make under $125,000

Note: This credit will be available every year.