My wife and I just welcomed our first child last Thursday, July 15th. We file our taxes under Married filing jointly and in 2020 we had a Adjusted Gross Income of $164,000 and a Taxable Income of $140,000. My question is: (a) do we qualify to receive the monthly child tax credit (b) if so, since this is our first born and she was just born last week, is there anything I need to do to receive the credit? Will it go straight to our bank account since we filed Taxes in 2020 even though we did not have a dependent last year? Or will we have to wait till we file our 2021 taxes in Feb/March to receive a lump sum of the credit?
Congratulations on the new baby! Such an exciting time. In order to qualify for the advanced child tax credit (monthly payments) your AGI needs to be less than $150,000 when Married Filing Jointly. Based on your 2020 income, you do not qualify for the advanced payments.
In the event your financial situation changes, I want to give you the link for the IRS Portal so you can update your information related to the Advanced Child Tax Credit Payments for 2021. Please keep in mind that the IRS is still working on updates for the portal. You should be able to add a child born in 2021 by the end of the summer. Please see following link: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Hi Slaudenslag - thanks for your reply. I thought that even if your AGI was above $150,000 for married filing jointly on 2020 taxes, we'd still receive a portion of the child tax credit, it just would be a smaller amount? Is that not the case?