Advance Child Tax Credit Payments to Start in July
The IRS has been sending letters to taxpayers notifying them that the advance child tax credit (CTC) will begin in July and continue through 2021. The advances were authorized by The American Rescue Plan that was signed into law in March.
The IRS will pay half the total 2021 estimated credit in monthly amounts beginning July 15th. The other half can be claimed when you file your 2021 income tax return. The maximum annual CTC will be $3,000 per qualifying child between the ages of 6 and 17, and $3,600 per qualifying child under age 6 at the end of 2021.
Qualifying for the Advance Child Tax Credit Payment
To qualify for advance CTC 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 the IRS 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.
The maximum credit is available to taxpayers with a modified Adjusted Gross Income of:
- $75,000 or less for single taxpayers;
- $112,500 or less for head of household;
- $150,000 or less for married couples filing a joint return and qualifying widow(er)s; and
The credit phases out as modified gross incomes exceed the amounts shown above.
The IRS will use the above information to determine if you qualify and automatically enroll you for advance payments. You do not need to take any additional action to get advance payments.
How to Unenroll from Receiving the Advance Child Tax Credit Payment
If you do not want to receive the advance payment, you may click here to unenroll directly on the IRS website.
Questions?
Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.
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