Beginning in 2021, the IRS automatically began issuing payments for the Child Tax Credit in advance of filing the 2021 return in an effort to relieve financial hardships brought about by Covid19. Half the total credit amount will be paid in advance monthly payments and you will claim the other half when you file your 2021 income tax return.
The 2021 Child Tax Credit has been revised as follows:
The credit for 2021 will:
- Increase from $2,000 to $3,000 for kids ages 6-17
- Increase the amount from $2,000 to $3,600 for kids under 6 years old
- Be fully refundable
- Raise the age limit to include 17-year-olds
Full requirements can be found in our Knowledgebase article.
How will the payments be issued?
The advanced Child Tax Credit payments will be issued using the same method as provided on your most recent tax return (direct deposit or mailed check).
What if I am a non-filer?
If you aren’t required to file a tax return and haven’t given the IRS your information already, you will need to visit the IRS website to provide the information as soon as possible to claim the advance payments.
Can I update my banking information for the Child Tax Credit?
Yes, you can update your banking information for the advanced Child Tax Credit payments on the IRS website. Updating your banking information here will not update banking information for your tax return.
You will need to either have an IRS account or provide valid photo ID to update the banking information on the IRS website.