Child Tax Credit Advance Payments

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The IRS is making changes to the Child Tax Credit and qualifying families will receive advance payments of the Child Tax Credit starting this summer. Beginning July 15th, qualifying families will receive half of their total credit in advance monthly payments. The other half will be claimed on their 2021 income tax return. These changes are only for the 2021 tax year.

According to the IRS website: to qualify for advance Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have:

  • Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
  • Given us your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool; and
  • A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
  • A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
  • Made less than certain income limits.

Based on information already provided, the IRS will determine if you qualify, and you will be automatically enrolled to receive advance payments.

Non-filers portal— use this link if you aren’t normally required to file a tax return but believe you qualify for the credit: https://www.freefilefillableforms.com/#/fd/childtaxcredit

Child Tax Credit Update Portal (expected to be available July 1st)— use this if you wish to opt out of the advance payments (https://www.irs.gov/credits-deductions/child-tax-credit-update-portal) and instead receive one lump-sum payment in 2022 as a credit on your income tax return.

The IRS will be sending out letters in January of 2022 regarding the advanced payments, please keep these documents and provide them to us with your 2021 tax organizer.

 

For more information, visit:

https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021

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