IRS Portals for Child Tax Credit are Active
In July 2021, the IRS will start to issue Advanced Child Tax Credit payments to qualified taxpayers. As part of previous legislation, the amount of the Child Tax Credit (CTC) has been increased for the 2021 tax year to $3600 for qualifying dependents under age 6 and $3000 for dependent children ages 6 to 17. As part of this legislation, the IRS will be paying out 1/2 of that credit over the remaining 6 months of 2021. That comes to $300/month for each child under 6 and $250/month for each child between 6 and 17 years of age. However, the advanced payments will be based on your 2020 tax return and then reconciled on your 2021 tax return. If any qualifying criteria change during the year, overpayments would have to be paid back to the IRS as part of your 2021 tax year filing and any underpayment would be credited on that return.
There are 2 portals that have been created by the IRS regarding the advanced payments. 1 is for non-filers to report qualifying dependents/update family information, the 2nd is for taxpayers to opt out of receiving the advanced monthly payments. Note that each spouse on a joint return will have to set up an account and opt out or you could still receive 1/2 of the credit advance. If you have questions on if you should opt out, please call the office to schedule a consultation.