IRS’s Next Child Tax Credit Payment Goes Out On Aug. 13th
On July 15, the IRS sent the first round of advance payments of the 2021 Child Tax Credit (CTC) to over 30 million families. Qualifying households will receive monthly payments of up to $300 per child under age 6, and up to $250 per child age 6 through 17, through the end of 2021. The payment amount depends on the taxpayer’s adjusted gross income (AGI). Generally, the advance payments will total half the CTC that the IRS anticipates for the taxpayer for 2021.
Millions of taxpayers have already received their first payment via direct deposit. Paper checks are mailed in cases where the IRS does not have banking information for a qualifying family. It may take a week or more for mailed payments to arrive. Upcoming payments will be sent on August 13th, and on the 15th of September, October, November and December.
The IRS will automatically calculate and send advance CTC payments to taxpayers who qualify and have done any ONE of the following:
- Filed a 2020 federal income tax return
- Filed a 2019 federal income tax return
- Used the 2020 IRS Non-Filers Tool for Economic Impact Payments (EIPs)
- Used the 2021 Non-Filers Signup Tool for Advance CTC (see link below).
The IRS urges all potentially eligible Americans who are not required to file federal tax returns and have not yet used an online Non-Filers Tool to do so as soon as possible. If you filed returns for both 2019 and 2020 but the IRS has not yet processed your 2020 return, your advance payments will initially be calculated based on your 2019 return. Your monthly payment amount may change after your 2020 return is processed. If you need help filing your 2019 or 2020 tax returns, please contact us today at https://calendly.com/rtw-calendar or call us at (855) 205-8486!
You can also use the Advance CTC portal to check your CTC eligibility, update your banking information, or opt out of advance payments if you prefer to claim your entire credit when you file your 2021 tax return.
IRS 2021 Advance CTC site, including Non-Filers Signup, Eligibility and Unenroll Tools: