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sugarmae13
Level 1

CTC Credit Amounts

I've read that each child dependent is worth $3600 per child under 6. I would like to know, is this in addition to what I would've gotten back normally? Or is it $3600 total for the year. I'm asking because I share custody with my ex-husband and we are trying to distribute funds fairly. If it's $3600 total, then that's an easy $1800 split. If claiming a child also gives us additional benefits, then I'd like to know what those are so we can calculate fairly (I'm the only one claiming dependents at the moment... it's complicated). I do understand that this is refundable, whereas the typical benefit is an offsetting one. It's great being able to ask these questions. Thanks for your time!

4 Replies
Lloyd7
Employee Tax Expert

CTC Credit Amounts

Hi Sugar Mae:

Thank you for trusting TurboTax with your tax questions! I’ll be happy to help!

You are asking about the amount of the Child Tax Credit in 2021 and whether there are other child tax benefits.

  1. The changes from previous years is a bit complex as your question suggests. The simplest answer is that the Child Tax Credit is $3600 for each child under six and it is ALL refundable, unlike the split approach in previous years where part was a reduction of tax and part was refundable. Therefore, your math is correct. $3600 divided by two for each child would be $1800 split between you and your Ex-Spouse for each child.
  2. You may want to refer to the follow link for details and a convenient child tax credit calculator: https://turbotax.intuit.com/tax-tips/family/7-requirements-for-the-child-tax-credit/L3wpfbpwQ#2021-c...

There are other tax benefits for parents of qualifying children. These may be of interest to you as well:

  1. This list includes the Child Tax Credit and tax credits and deductions related to the education of your child: https://turbotax.intuit.com/tax-tips/family/sweet-child-of-mine-tax-credits-for-parents/L1DqxZ9mh
  2. You may also be able to take advantage of the childcare expense credits for your child. Please see this link for details: https://turbotax.intuit.com/tax-tips/family/filing-tax-form-2441-child-and-dependent-care-expenses/L...

Thanks again for trusting TurboTax with your tax questions. I hope this helps! Please feel free to ask again should you have additional questions or need further explanations!

Have a blessed day! Lloyd7

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Loretta P
Employee Tax Expert

CTC Credit Amounts

The maximum amount of the CTC for the entire year is:

  • $3,600 for children ages 5 and under at the end of 2021
  • $3,000 for children ages 6 through 17 at the end of 2021

Early payments from the IRS of 50% of the estimated amount of the Child Tax Credit that a taxpayer may properly claim on their 2021 tax return during the 2022 tax filing season

 

The 50% of estimated CTC will be spread out in payments from July to December

 

Here is a link to the 2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions on  the IRS website:  https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequentl...

 

This is a link to the Child Tax Credit Update Portal which is where you would manage your account:

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal

 

 

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sugarmae13
Level 1

CTC Credit Amounts

Thank you, that clarifies a lot. Is there a way to tell what a child dependent was worth without the new CTC? I had an accountant tell me once they're worth up to an extra $1000 on your return (provided you have things that need offsetting). Is that an accurate figure for a typical year? 

Loretta P
Employee Tax Expert

CTC Credit Amounts

That was the amount under the old tax laws.  Under the new tax law the ACTC is worth:

 

•$3,600 for children ages 5 and under at the end of 2021

•$3,000 for children ages 6 through 17 at the end of 2021

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