06/16/2021
IMPORTANT: Please read this if you file children on your income tax return.
Monthly child tax credit payments start July 15. Here’s what parents need to know. In just a few weeks, monthly child tax credit payments will go out to U.S. households that are home to about 65 million kids, according to the IRS.
The expanded child tax credit was established in the American Rescue Plan signed into law in March. In 2021, the maximum enhanced child tax credit is $3,600 for children younger than age 6 and $3,000 for those between 6 and 17.
The credit will be distributed as an advance on 2021 taxes in monthly installments. For households getting the full benefit, those payments will be $300 per month for children under the age of 6 and $250 for those between the ages of 6 and 17.
Here’s what families need to know ahead of the July 15 start. The reason that I am posting this information is to alert everyone as to what this will mean for next years taxes. If you choose to receive these payments that I described previously starting July 15, 2021, then your refund for next year, 2022, will be reduced by the amount that you get now. So, if you want all of your money like normal, in one lump sum at tax time, then you must go online to www.irs.gov/childtaxcredit2021 and opt out. If you do not do this and inform the IRS that you wish to receive all of your money with your refund next year, IRS will automatically send you your child tax credit staring on July 15, 2021 and your refund for next year will be affected (lower).
Find details about the advance Child Tax Credit payments, including how to get them or stop getting them.
