For tax year 2021, advance payments of the Child Tax Credit are to begin in July of 2021. If you do not wish to receive the advance payments and choose to claim the whole amount on the 2021 tax return instead, the IRS has created a portal to unenroll in the payments. However, once you unenroll from receiving the advance payments, you cannot re-enroll.
Who needs to complete the unenrollment process?
If you are married filing jointly, both you and your spouse will need to unenroll. If only one spouse unenrolls, the payment will be split in half and the person that did not unenroll will receive one half of the Advanced Child Tax Credit monthly payment.
How do I know if I qualify for advance payments?
Generally, you should receive a letter from the IRS indicating if you qualify for the advance payments. However, if you did not receive a letter, the IRS has an interactive tool to assist you with determining if you qualify for the advance payments.
How much are the payments?
The payments are based on a 12 month cycle. Beginning in 2021, the child tax credit is $3,600 for children under age 6 and $3,000 for children age 6 through 17. Using the 12 month cycle, your payment can be up to $250 per qualifying child ages 6-17 or up to $300 per qualifying child under age 6. The remaining amount of the credit will be claimed on the 2021 tax return.
When will the advance payments be issued?
Advanced payments will be issued around the 15th of each month. The IRS current schedule for payments is as follows:
What is the deadline to unenroll?
To stop the advance payment from being issued, you must unenroll at least 3 days prior to the first Thursday (Midnight) of the next month.