Advance Child Tax Credit
The COVID-19 pandemic took the country by storm. Many businesses were shut down, parents were forced to work from home and schools were closed or operating at minimal capacity. Now that families are beginning to re-enter the workforce and schools are re-opening, registration fees, supply fees, and additional school necessities will cost parents money. The advance child tax credit will now be made available to families that qualify.
The IRS will pay half the total credit amount in advance monthly payments beginning July 15, 2021. The payments will be issued in monthly installments. Parents will claim the other half when they are able to file their 2021 income tax return. These changes apply to tax year 2021 only.
To qualify for advance Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have: (irs.gov)
- Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
- Given us your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool; and
- A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
- A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
- Made less than certain income limits.