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July 16, 2021

Advance Child Tax Payments in Tax Year 2021: What You Need to Know

Important changes to the Child Tax Credit will help many families get advance payments of the credit starting soon. The IRS will pay half the total credit amount in advance monthly payments beginning July 15. Then, eligible taxpayers can claim the other half when you file your 2021 income tax return.* Take note that these changes apply to tax year 2021 only.

Do you qualify for advance payments?

According to the IRS, to qualify for advance Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have:

  • Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
  • Given the IRS your information in 2020 to receive the Economic Impact Payment using the “Non-Filers: Enter Payment Info Here tool”; and
  • A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
  • A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
  • Made less than certain income limits.

When do monthly payments start?

Advance Child Tax Credit payments will be disbursed in monthly installments starting July 15, 2021, through December 2021. You can find details about the advance payment schedule here.

How can I unenroll if I don’t want the advance payments?

The IRS has a Manage Payments tool, which you can use to:

  • Check if you’re enrolled to receive payments
  • Unenroll to stop getting advance payments
  • Provide or update your bank account information for monthly payments starting with the August payment

The IRS has advised: “To stop advance payments, you must unenroll at least three days before the first Thursday of the next month by 11:59 pm Eastern Time. You do not need to unenroll each subsequent month.” The following table is from the IRS:

Payment Month Unenrollment Deadline Payment Date
July 6/28/2021 7/15/2021
August 8/2/2021 8/13/2021
September 8/30/2021 9/15/2021
October 10/4/2021 10/15/2021
November 11/1/2021 11/15/2021
December 11/29/2021 12/15/2021

 

Where can I find out more?

To manage payments, check if you’re eligible, submit information as a non-filer or read additional details, please visit IRS Advance Child Tax Credit Payments, which contains the information you’ll need to determine what’s right for you.

*For information about your tax situation or specific advice, please consult a qualified tax professional.


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