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IRS Begins Issuing Advance Child Tax Credit Payments


Recent changes to the Child Tax Credit could have a significant impact on families across the country. For instance, the IRS began paying half of the total credit amount in advance monthly payments to eligible taxpayers in mid-July. Qualifying taxpayers can expect to receive the other half when they file their 2021 income tax returns. For help determining whether you are eligible for advance payments, please reach out to an experienced Florida tax & IRS lawyer today.

Do I Qualify for Advance Child Tax Credit Payments?

To qualify for advance Child Tax Credit payments, a taxpayer (and his or her spouse if a couple filed jointly) must have:

  • Filed a 2019 or 2020 tax return and claimed the Child Tax Credit; or
  • Given the IRS information in 2020 in an effort to collect the Economic Impact Payment;

In addition to fulfilling one of these requirements, a taxpayer must also:

  • Have his or her main home in the U.S. for more than half of the year, or file a joint return with a spouse who has his or her primary residence in the U.S.;
  • Have a qualifying child who is under the age of 18 years old at the end of 2021 and has a valid SSN; and
  • Earned less than a certain income limit.

The IRS automatically enrolls taxpayers for advance payments if they qualify, so taxpayers generally don’t have to take any additional steps to get advance payments. Payments are primarily made as direct deposits or via check and while automatic in most cases, will require further action by certain individuals, including non-filers.

How Much are Child Tax Credit Payments?

Taxpayers who qualify for advance tax credit payments should receive half of the credit for each child in equal payments every month for the rest of 2021. The exact amount of an advance Child Tax Credit payment will, however, depend on the age of the child being claimed. For instance, qualifying taxpayers can expect to receive up to $300 per month for each of their children who are under the age of six years old. These payments will generally be paid in six monthly installments. Parents can receive up to $1,500 in advance, on the other hand, for children between the ages of six and 17, generally in six monthly payments of $250. However, advance payment amounts will be reduced if:

  • A taxpayer is married, filing jointly (or as a widow or widower) and has an average gross income of more than $150,000 a year;
  • A taxpayer files as a head of household and earns more than $112,500 a year; or
  • A taxpayer is a single filer (or married and filing separately) and earns more than $75,000 a year.

Taxpayers who qualify for advance payments will most likely receive a payment each month on the 15th until the end of 2021. The first payments were sent on July 15th to eligible families who filed their 2019 or 2020 tax returns.

Schedule a One-on-One Consultation

For help determining whether you qualify for advance Child Tax Credit payments, or to learn more about your options if you have not received a payment, please call dedicated tax & IRS lawyer, CPA, and Former Special Agent FBI, Ronald Cutler at Ronald Cutler, P.A. at 386-490-9949 today.