Beginning July 15, 2021, many eligible families across the country will begin receiving advance payments related to changes made to the Child Tax Credit with the passing of the American Rescue Plan Act. This provides a credit of up to $3,600 per child under age 6 and $3,000 per child from ages 6 to 17. For 2021, it is a refundable credit, meaning if the credit exceeds taxes owed, families may receive the excess amount as a refund. The IRS will pay half the total Child Tax Credit amount in advance via monthly payments between July 15 and December 2021, unless eligible individuals/families opt out of receiving these payments in advance. You will claim the other half when you file your 2021 income tax return in 2022. These changes apply only to tax year 2021.
Learn more about the Child Tax Credit.
To receive the Advance Child Tax Credit payments, the IRS needs to know current information about you and your children. If you already filed a 2019 or 2020 tax return, or used the IRS Non-filer Portal in 2020 to claim your stimulus payments and had no major changes your household information, including your family situation, you do not have to do anything. In these instances, the IRS has enough information to send your family your Advance Child Tax Credit payments automatically.
Learn more about how to get your payments.
Visit the Financial Resiliency Center to find out the answers to questions including:
- Am I eligible to claim the Child Tax Credit?
- How will Advance Child Tax Credit payments be made?
- Will the Advance Child Tax Credit payment affect my benefits?
- Why am I receiving a letter about the Child Tax Credit and what do I do with it?
