2021 Child Tax Credit Payments Start July 15
The IRS announced that this week on July 15 American families will start to receive their first Advance Child Tax Credit Payments. Going forward monthly installments will be disbursed via direct deposit or by mail, through December 2021. How will you receive your payments? If the IRS already has your banking info, they will send your monthly installment via direct deposit, just as you receive your income tax returns. If you don't have a bank account, payments will be mailed out on July 15 and the 15th day of every month through December 15.
Families will get half of the child credit in the monthly installment payments and then can claim the remainder of the credit next year, when they file their 2021 tax returns. Here's more details to help you understand how this will work...
How much will the payments be each month, per child? For children age 0 - 6, parents/head of household will receive $300 per child in this age group and for children 7- 17 parents/head of household will receive $250 per child in that age group. Check and see if you are eligible here.
Once you filed your 2020 tax returns, the IRS has automatically enrolled you and no further action is needed to receive the Advance Child Tax Credit payments. If you've already received payments based on your 2019 tax return, the amount may change after your 2020 taxes are filed and processed. For more information regarding tax credit monthly installments or questions, click here. To qualify for advance Child Tax Credit payments, you must have one of the following:
* Filed a 2019 or 2020 tax return and claimed the Child Tax Credit
* Given the IRS your info in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool;
* Have a main home 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 U.S. for more than half the year
* Have a child under age 18 at the end of 2021 and who has a valid Social Security number
If you are not required to file a tax return and the IRS does not have your info already, you will need to contact them to be eligible to receive the Child Tax Credit.