If you’re wondering whether you’re eligible for the 2021 child tax credit, eligibility is as follows: taxpayers with adjusted gross income below $150,000 (married filing jointly), $112,500 (head of household) and $75,000 (single) are eligible to receive the full credit. Credits phase out completely for high earners at $440,000 (married filing jointly), $240,000 (head of household) and $240,000 (single).

The IRS is relying on 2020 returns (or 2019 returns) to determine eligibility for the advance payments. Most eligible taxpayers would have received letters from the IRS, and you can also visit the IRS website on advanced child tax credit payments in 2021 for more details.

The 2021 credits are $3,000 per child under age 18 and increase to $3,600 if the child is under age 6. This tax credit was $2,000 in 2020 and will revert back to $2,000 in 2022 without further legislation.

If you believe you are eligible, speak with your wealth advisor and tax professional at Mariner. They can provide more information on next steps.

For more on this topic, check out our podcast on how to keep your kids financially literate.

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