Families who are currently receiving advance payments of the 2021 Child Tax Credit (CTC) may now use the online CTC Update Portal (link below) to report changes in their incomes. Reporting an income change may qualify taxpayers for a higher monthly payment amount, or ensure that they do not need to repay advance CTC payments next spring.
The maximum monthly payment is $300 per child qualified under age 6, and $250 per qualifying child of age 6 through 17. Generally, a small change in income will not affect a household’s payment amount. However, if you have not been receiving the maximum amount and had a significant income drop in 2021, you may qualify for a substantially larger December payment.
Similarly, if your income greatly increased in 2021 compared to 2020, you should report this change to avoid potentially facing an advance CTC repayment requirement. You must use the portal to report your income changes by November 29 in order for the IRS to make any necessary adjustments to your December payment. The IRS expects to launch a Spanish version of the portal by that time.
Eligible families who have not been receiving advance CTC payments because the IRS does not have their information may still register for the program. The IRS especially urges lower-income taxpayers who are not required to file tax returns to use the online signup portal (link below) by the November 15 deadline. Those who sign up in November will receive a single advance payment in December, of up to $1,800 per qualifying child under 6, and $1,500 per qualifying child age 6-17.
IRS CTC UPDATE PORTAL: https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
IRS CTC SIGNUP PORTAL: https://www.whitehouse.gov/child-tax-credit/sign-up/