What are the Advance Child Tax Credit payments?
For the year 2021, half of the annual Child Tax Credit will be received in the form of 6 monthly cash payments from July 2021 to December 2021.
How do I receive the Advance Child Tax Credit Payments?
File your 2020 tax return as soon as possible, as this will be used to determine if you are eligible to receive the payment. Your 2019 tax return information will be used if your 2020 return has not been filed.
How much will I receive?
Each qualifying child age 5 or younger will receive $300 per month for 6 months: $1,800 in total which is half of the annual Child Tax Credit of $3,600 for this age group
Each qualifying child age 6 to 17 will receive $250 per month for 6 months: $1,500 in total which is half of the annual Child Tax Credit of $3,000 for this age group
The advance payment program is currently only in effect for half of the calendar year: July 2021 to December 2021. The other half of the credit will be accounted for and reconciled when you file your 2021 tax return.
When and how will I receive the payments?
- Payment dates:
- 7/15/21
- 8/13/21
- 9/15/21
- 10/15/21
- 11/15/21
- 12/15/21
- Your payments will be directly deposited if your bank information has been used for:
- 2020 or 2019 tax refund or payment
- other benefits from a federal agency such as Social Security, Department of Veterans Affairs, or Railroad Retirement Board
If there is no record of bank information, the payments will be sent by mail.
Why would I want to unenroll?
If you expect to earn significantly more income in 2021 than you did in 2020, you should consider opting out. The full child tax credit will be available to individuals who earn up to $75,000 (phased out at $95,000) and couples earning up to $150,000 (phased out at $170,000).
If you do not opt out and your income is higher than the eligibility requirements to receive the Child Tax Credit, you will have to report the excess Child Tax Credit amount received on your tax return which may reduce your refund or increase the amount of taxes you owe.
How do I unenroll from the advance payments?
Use the Child Tax Credit Update Portal (CTC UP) to unenroll from the advanced payments. Make sure to unenroll by the midnight of the following dates:
- 8/2/21
- 8/30/21
- 10/4/21
- 11/1/21
- 11/29/21
If you choose to unenroll, BOTH PARTNERS (if married filing jointly) must unenroll. Re-enrolling may be available in late September 2021.
How do I update my information for receiving this payment?
To update your information:
- Go to Child Tax Credit Update Portal (CTC UP) at IRS.gov
- Use the portal to update the following:
- Bank information
- Election out of Advance Child Tax Credit payments
- In the future, you will also be able to use the Portal to update:
- Address
- Marital status
- Number of qualifying children
- Income
- Use the portal to update the following:
Do I need to keep track of the payments that I received?
The IRS will be sending out Letter 6419 in January 2022 providing the total amount of 2021 disbursements. This information should be provided to your tax preparer.