Parents who claim a child(ren) every other tax year will need to let the IRS know who should be receiving the Advanced Child Tax Credit.
What does the parent not claiming the child on the 2021 tax return need to do?
If you are the parent NOT claiming the child on the 2021 tax return, you will need to opt out of receiving the Advance Child Tax Credit (CTC). If you receive advance CTC payments for a child who does not qualify for the CTC or one you are not claiming on your tax return, you will be required to pay the amount received back.
You can visit the IRS website and opt out using the Manage Payment link.
What does the parent claiming the child on the 2021 tax return need to do?
Currently, the IRS website does not have the portal created to update your family information and let the IRS know you will be claiming an eligible dependent. However, they do indicate this feature will be available by late summer.
You can choose to update your banking information, opt out of advance payments and check your eligibility on the IRS website.
What if I didn't file a 2020 return?
If you weren't required to file a 2020 tax return and haven’t given the IRS your information already, you will need to use the Non-Filer Sign-Up Tool to provide the IRS with information for the Child Tax Credit.