2021 Advance Child Tax Credit Payments
Through the expanded Child Tax Credit, the IRS will be making monthly payments of $250-300 per child to eligible families from July to December 2021.
Through the American Rescue Plan (ARPA), Congress expanded the Child Tax Credit amount for 2021, and families can receive half of the credit in 2021 through advance monthly payments.
Most families will automatically receive monthly payments starting on July 15, 2021. Unless those families opt out, they will receive monthly payments of $250-$300 per child under the age of 18 from July to December 2021. Only families who have filed a 2019 or 2020 tax return will receive the payments automatically.
If you need to file your taxes:
- – You can file them on your own for free at MyFreeTaxes.com or IRS Free File.
- – Our team of IRS-certified tax preparers can help you file your return for free. Visit ProsperTaxHelp.org for our hours and locations.
More information and portals for updating your information or opting out of the payments are available at irs.gov/childtaxcredit2021. Don’t forget to file your 2021 tax return in 2022 to claim the second half of your Child Tax Credit. Our team of IRS-certified tax preparers can help you file for free. Visit ProsperTaxHelp.org in January 2022 for hours and locations.
Frequently Asked Questions about the Child Tax Credit
How much can I get?
- For 2021, the credit amount for eligible dependent children is $3,000 per child between the ages of 6 and 17 and $3,600 for children under age 6.
- Half of this 2021 Child Tax Credit amount will be available through advance monthly payments distributed from July to December 2021. The monthly payments will be:
- – $250 for each child between the ages of 6 and 17
- – $300 per month for each child under age 6
- You will need to claim the other half of your 2021 Child Tax Credit by filing your 2021 tax return in 2022.
- You can use this calculator to estimate your 2021 Child Tax Credit amount: https://www.kiplinger.com/taxes/602334/2021-child-tax-credit-calculator
When will I get the advance Child Tax Credit payments?
The payments will be made either by direct deposit or by paper check, depending on what information the IRS has on file for your household (usually based on how you received your refund when you filed your last tax return) on the following dates:
- July 15, 2021
- August 13, 2021
- September 15, 2021
- October 15, 2021
- November 15, 2021
- December 15, 2021
- The adult filing taxes must have a Social Security Number or an Individual Taxpayer Identification Number (ITIN), and children in the family must:
- – Have a Social Security number,
- – Live with you for at least half of the year,
- – Be under age 18 as of December 31, 2021, and
- – Be claimed on your tax return.
- The maximum credit is available to taxpayers with an annual income below:
- – $75,000 for singles,
- – $112,500 for heads of household, and
- – $150,000 for married couples filing a joint return and qualified widows and widowers.
- The credit gradually decreases as income increases above these amounts.
What if I don’t know if I’m eligible?
- The IRS has developed an interactive tool that families can use to determine whether they qualify for the payments. Check if you may be eligible for the advance child tax credit payments by using this tool: https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant
How do I claim the Child Tax Credit?
- If you filed your 2019 or 2020 tax return no further action needed. The IRS will begin distributing monthly payments July 15, 2021.
- If you have not filed your 2019 or 2020 tax return and your family meets eligibility criteria you need to file your 2019 or 2020 tax return as soon as possible.
What if I do not have a tax filing requirement?
- The IRS created this portal for non-filers to claim the Child Tax Credit: https://www.irs.gov/credits-deductions/child-tax-credit-non-filer-sign-up-tool
- Also, to help families claim the credit, Code for America created this simple tool https://www.getctc.org/en in collaboration with the White House and US Department of Treasury.
What if I do not want to receive the advance payments?
- The IRS created this portal: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal where families can unenroll from receiving these advance payments and instead receive the full amount of the credit when they file their 2021 return next year.
What if the IRS does not have my household’s most accurate information?
- In August, families will be able to use this portal: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal to notify the IRS of changes in their:
- – income,
- – mailing address,
- – filing status,
- – number of qualifying children, and
- – direct deposit information.
How can I get help filing my taxes for free?
- Our team of IRS-certified tax preparers can help you file your return for free at our two Prosper Centers in Austin, Texas. Visit ProsperTaxHelp.org for schedule and locations.
- File your taxes on your own for free online at MyFreeTaxes.org, GetYourRefund.org or through the IRS Free File program at https://apps.irs.gov/app/freeFile/.
If you have any questions about the advance Child Tax Credit payments or need help receiving it, we have a team of experts ready to help.
Call 737-717-4000 to schedule a phone or in-person appointment.