2021 Advance Child Tax Credit Payments: FAQs

On July 15, 2021, the IRS will begin to distribute Advance Child Tax Credit (CTC) payments to eligible taxpayers. Here’s what you need to know.

 

 

What is the Advance Child Tax Credit?
As part of the American Rescue Plan, taxpayers eligible to receive the CTC (a credit for people under a certain income level with dependent children under 17 years old) can now receive half of the credit in advance, rather than waiting until they file their 2021 tax return.

The IRS will make the advance CTC payments on a monthly basis starting July 15 through December 2021.

You will claim the other half of your CTC when you file your 2021 income tax return. These changes apply to the 2021 tax year only.

Read more information from the IRS here.

 
How much will I receive from the Advance Child Tax Credit?

The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17.

You’ll get the maximum credit if you’re a taxpayer with a modified adjusted gross income (AGI) of:

 
  • $75,000 or less for singles
  • $112,500 or less for heads of household
  • $150,000 or less for married couples filing a joint return and qualified widows and widowers
Those who have a higher AGI will receive a smaller credit. Read more information on how your payment will be calculated on the IRS website.


Who is eligible to receive an Advance Child Tax Credit?
Use the IRS’ Child Tax Credit Eligibility Assistant to see if you’re eligible. Read more information on eligibility on the IRS website.


How do I know if I will get an advance payment?
In June, the IRS mailed letters to families who may be eligible based on information from either their 2019 or 2020 Federal income tax return or the Non-Filers tool on IRS.gov used last year to register for an Economic Impact Payment.

Families who are eligible for Advance CTC payments will receive a second, personalized letter that will include an estimate of their monthly payment.

What do I need to do to receive my payment?
Most families do not need to take any action to get their payment. Normally, the IRS will calculate the payment amount based on the 2020 tax return.  If that return is not available, the IRS will instead use the 2019 return. The IRS asks families who have not filed a tax return to use the “Non-filer signup tool” to submit basic information that will allow the IRS to distribute their payments.

How will I receive my payment?
Eligible families will receive Advance CTC payments by direct deposit or check.

Will accepting the Advance Child Tax Credit impact my 2021 tax return?
Your accountant or tax professional can address any questions about your specific financial situation.

Do I have to accept the payment?
No. If you wish to unenroll from the Advance CTC payment and receive your entire credit when you file your 2021 tax return, you can do so through the IRS website.



FRAUD ALERT: Advance Child Tax Credit payments create new opportunities for scammers to attempt to steal your information. Do not respond to any unsolicited requests for your information. Remember: the IRS will not initiate contact with you through email, text message or social media messages. When in doubt, call CustomerLine at 914-902-2775. Our TDD number is 800-824-0710. Learn more about recent fraud trends here.