2021 Advance Child Tax Credit Payments
Jun. 22, 2021
The Child Tax Credit was created as a benefit to help families who are raising children. The CTC in 2020 was $2,000 per child and was expanded up to $3,600 for children under 6 and to $3,000 for children 6 to 16-years-old, while also adding 17-year-olds to the $3,000 credit. Qualifying families will automatically receive half of the credit via advanced payments broken into monthly installments of $300 for children ages 6 and under, or $250 per child ages 6-17 from July through December. Taxpayers would claim the other half of the available credit when filing their 2021 federal income tax return next year. These changes apply to tax year 2021 only.
People who receive payments via direct deposit will get their first payment on July 15. After that, payments will go out on the 15th of every month, except in August which will go out on the 13th. Checks will be sent to those who haven’t provided bank account information around the same time.
If you filed taxes this year, last year, or signed up for Economic Impact Payments (aka: stimulus checks) using the IRS’ non-filer tool last year, the IRS will automatically send payments. If you didn’t file taxes or sign up for stimulus payments, you can still sign up for the child tax credit payments. The IRS and Treasury have unveiled an online Non-filer Sign-up tool designed to help families who do not normally file tax returns register for monthly child tax credit payments.
It is possible to opt out of the monthly payments and receive the full credit when you file your 2021 tax return, especially for those that may owe the IRS and would like to use the credit to offset a tax bill. Visit the IRS Child Tax Credit Update Portal to unenroll from advance payments.
Child Tax Credit payments are not considered income for any family and will not impact any other federal benefits.