IRS Update: Changes To The Child Tax Credit This 2021

The Child Tax Credit rolled out this summer. Eligible parents will receive payments until December of this year to complete one-half of the total amounts of Child Tax Credit. The other half will be given to eligible families when they file their 2021 income tax returns.

For those eligible to receive the advanced Child Tax Credit payments, you do not need to take any action. The Internal Revenue Service (IRS) already has your tax information on file. The payments will be sent automatically to you.

To qualify for advance payments of the Child Tax Credit, you (and your spouse, if you filed a joint return) must have:

  • 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 with the Non-Filers: Enter Payment Info Here tool or
  • Given us your information in 2021 with the Non-Filer: Submit Your Information tool; and
  • Lived in a main home in the United States for more than half the year (the 50 states and the District of Columbia) or filed 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.

Eligible families can receive advanced payments of up to $300 per month for each child if they have children under six. Otherwise, they can receive up to $250 per month for each child. Families can benefit from the payment even if they do not have earned income or owe any income taxes.