Child Tax Credit: Changes in 2021 – Due to recent changes in tax law, the IRS began making advance payments, in the amount of half the total eligible child tax credit amount in monthly payments, beginning July 15th - the additional half can be claimed when you file your 2021 income tax return.
To qualify for advance Child Tax Credit payments, you and your spouse, if you file jointly, must have:
- Filed a 2019 and/or a 2020 tax return, and claimed the Child Tax Credit on the return, or
- Provided your information in 2020 to receive the Economic Impact Payment, as a Non-Filer, and
- Resided in the United States for more than half the year, or file a joint return with a spouse who has a main home in the United States for more than half the year; and
- Claim 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 – under $150k for a couple filing jointly, $112.5 for head of household, and $75k for single filers. There are AGI phase outs for otherwise eligible tax return filers over these income thresholds, who otherwise qualify, which will result in partial advance payments.
It’s important to keep in mind that even if you don’t receive an advance payment for the child tax credit, you still may be eligible for the credit, or a partial credit, and you will have the opportunity to claim the child tax credit when you file your 2021 tax return, if you are otherwise eligible. Please let us know if you have any questions regarding the child tax credit, or if there is anything else we can assist you with.
Mike and Staff
Ph (360) 426-0230