For tax year 2021 ONLY, the ADVANCED Child Tax Credit (CTC) payments are EARLY payments from the IRS. These payments are advanced payments of your 2021 Child Tax Credit.
· These monthly payments will be made starting in July and through December 2021 on the 15th of each month, based on the information contained on the 2020 return.
· These payments will not be reported as income on your 2021 tax return.
You received $2000 per qualifying child in 2020. The Child Tax Credit per qualifying child has increased to $3,600 for children ages 5 and under; and $3,000 for children ages 6 through 17.
Your total advance CTC payment is half of the amount of your estimated 2021 CTC. This amount is then divided into monthly advance payments, the remainder will be claimed on your 2021 Tax Return.
As a result:
For each of your qualifying children age 5 or younger, you should receive $300. That is determined by dividing $3,600 in half, which is $1,800. Six monthly payments of $300 will provide you with $1,800.
For each of your qualifying children ages 6 to 17, you should receive $250. That is determined by dividing $3,000 in half, which is $1,500. Six monthly payments of $250 will provide you with $1,500.
IMPORTANT: If the total disbursed to you is greater than the CTC amount that you are allowed to claim on your 2021 tax return, you may have to repay the excess.
The Child Tax Credit begins to be reduced per child if your income in 2021 exceeds:
$150,000 if married and filing a joint return or if filing as a qualifying widow or widower.
$112,500 if filing as head of household; or
$75,000 if you are a single filer or are married and filing a separate return.
Notify us ASAP if you need to update your mailing address, add or subtract the number of your qualifying children, report a change in your marital status, or report a change in your income.
We MUST HAVE the total amount of the advance Child Tax Credit payments you received to complete your 2021 Tax Return.
If you prefer TO NOT RECEIVE monthly advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, you can unenroll through the Child Tax Credit Update Portal (link below).
Manage your Child Tax Credit for 2021 here:
Please let us know if you have any questions!