Changes to the Child Tax Credit for the tax year 2021 will help many families see an influx of monthly cash flow instead of having them wait for the annual tax season. The advanced Child Tax Credit is part of Biden’s stimulus bill called the American Rescue Plan; the expanded child tax credit will provide $3,600 annually for children under age six and $3,000 for those ages six to 17 for most American families.
The Advance Child Tax Credit will give a monthly payment of half the annual child tax credit beginning around July 15; for the first time, people will receive part of the Child Tax Credit in monthly payments. The remaining portion of the Child Tax Credit will come to families when they file taxes. For every child six to 7 years old, families will get $250 each month, and for every child under six years old, families will get $300 each month.
To qualify for the entire Child Tax Credit payment, single parents making up to $75,000, head of household filers earning up to $112,500, and joint filers making up to $150,000. Families making more than that will be eligible for a portion of the credit, which phases out entirely for single filers who make more than $200,000 and joint filers making more than $400,000.
If one has already filed 2019 or 2020 tax returns which claimed the Child Tax Credit; or provided information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool (for those who typically are not required to file tax returns); and a primary home in the United States for more than half the year (the 50 states and the District of Columbia) or file 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 income limits.
The information previously provided will determine qualifications and automatically enroll one for the advanced child tax credit payments. If you were not required to file 2019 or 2020 taxes, please click here for non-fliers to ensure sign-up for the advance child care payment, should your household qualify.
You can check the Internal Revenue Service website to check your eligibility and manage or unenroll from receiving the advance payments and permitting you to claim the full child tax credit when you file your annual taxes.