Advance Child Tax Credit
As part of the American Rescue Plan approved in March, many changes were made to the Child Tax Credit that included an increase for some taxpayers and made the credit fully refundable, meaning that you can take advantage of the credit even if you don't owe any income taxes. Starting July 15th 2021 qualifying taxpayers will be able to receive an Advance for the CTC.
Here is what you need to know:
To automatically qualify for the monthly payments you must have filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return.
The IRS will calculate the monthly payments based on their 2019 or 2020 federal return.
There are going to be monthly payments of $250 for each child aged 6 to 17, and $300 for all under 6 years old. Which means only half of the Credit amount is available for advance payments.
Advances are not subject to offset for past due child support or Federal and/or State tax debts.
You have until the end of June to make any changes in the bank account information. Keep in mind that those changes will apply to August payment.
We highly recommend that If you are not in need to receive the advance payment please opt-out of it in order to claim the full amount at the time of filing your 2021 tax return. To opt-out, the IRS made available a tool click here
If you aren’t required to file a tax return and because of that the IRS does not have your information, click here to enter your basic information for the Child Tax Credit.
We hope this information will be useful to you.