The IRS will pay one-half of the child tax credit for your 2021 Tax Return in advance. The advance payments will begin on July 15, 2021. The other half of the child tax credit will be claimed when you file the 2021 Tax Return.
Requirements for Advance Child Tax Credit Payments
But you must have done the following in order to receive the Advance Tax Child Credit payment:
- Filed a 2019 or 2020 Tax Return AND claimed a child tax credit in said return;
- Had your main home in the United States for more than half of the year;
- Have a qualifying child under the age of 18 at the end of 2021 with a valid Social Security Number; and,
- Made less than certain income limits.
Income Limits for Child Tax Credit
- Singe Filer: AGI under $75,000
- Head of Household: AGI under $112,500
- Joint Filer (married joint filer): AGI under $150,000
How much is the Child Tax Credit?
In 2021, the Child Tax Credit amounts to $3,000 per qualifying child. The child must be 17 years or under as of December 31, 2021. The Child Tax Credit increases to $3,600 if the child is under 6 years of age as of December 31, 2021.
Those qualifying for the Child Tax Credit will begin receiving their one-half in monthly installments on July 15, 2021. For example, an individual entitled to a $3,000 Child Tax Credit will receive $1,500 in monthly installments of $250 beginning in July.
However, those qualifying for the Child Tax Credit can opt out of the monthly payments. Instead, you may choose to receive the full Child Tax Credit on your 2021 Tax Return.
