The IRS will begin making monthly advanced payments toward the Child Tax Credit of 2021 to eligible families, beginning July 15, 2021.
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What is the Child Tax Credit (CTC)?
Families who claim the Child Tax Credit, will receive up to $3,000 per qualifying child between the ages of 6 and 17, and up to $3,600 per qualifying child under age 6 at the end of 2021. The credit includes children who turn 17 in 2021.
Who is eligible for advance Child Tax Credit payments?
To qualify for advanced Child Tax Credit payments, you – and your spouse, if you filed a joint return – must have:
- Filed a 2020 tax return and claimed the Child Tax Credit on the return; or provided your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool; and
- A primary residence in the U.S. and reside in it for at least half of the year are eligible to receive the child tax credits; and
- A qualifying child under 18 at the end of 2020 with a valid Social Security number; and
- Earned less than certain income limits: $75,000 per year for single filers, $112,500 per year for heads of household, and $150,000 per year for married couples.
Check your eligibility using the Advance Child Tax Credit Eligibility Assistant.
Do I need to do anything to receive the monthly payments?
If you filed taxes in 2020 and received the Child Tax Credit, you’ll automatically receive advanced payments. If you didn’t file taxes for 2020 and want to receive advanced payments, you should complete the Child Tax Credit Non-filer Sign-up Tool.
Payments will arrive the same way as the three stimulus payments distributed to eligible taxpayers since the start of the pandemic. If you need to update your information, the IRS plans to provide a tool for that. Visit their website to stay up to date.
The last monthly payments will be issued on December 15th. You can opt-out of receiving the advanced monthly payments and receive your Child Tax Credit when you file your taxes. To opt-out or change when and how you receive your deposit, and for deadlines to make these adjustments by please visit the IRS website.
- Check out our top tips to stay up to date on the status of your Child Tax Credit here.
- Estimate the amount of your 2021 Child Tax Credit with our Child Tax Calculator.
- Be aware of potential scams related to your Child Tax Credit advancements. The IRS and Federal Trade Commission provide important tips on what to look out for and how to protect yourself.
- Consider putting your Child Tax Credit payment to good use by saving for upcoming childcare expenses or emergencies, paying down debt, or buying essentials.
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