The IRS will make the remainder of this year’s Child Tax Credit payments (July to December 2021) in advanced to qualifying recipients starting July 15.
You still will have to claim January through June 2021 when you file your return in 2022.
How much is the Advanced Child Tax Credit?
The following have been implemented for the 2021 tax year only and will be determined based off of your 2020 tax return:
- For children under 6, you will receive $300/month/child
- For children ages 6-17, you’ll receive $250/month/child
- Payments will be made on the 15th of each month
Who qualifies for the Child Tax Credit?
- You can claim the child tax credit if your modified adjusted gross income (MAGI), is under $200,000 for single filers – or under $400,000 if you and your spouse file a joint return
- If your MAGI is greater than $200,000 ($400,000), the credit is reduced by $50 for each $1,000 over the threshold amount
Should everyone that qualifies take the
Advanced Child Tax Credit?
It’s important to note if you are enrolled to receive the Advanced Child Tax Credit payments, this will reduce the amount you are able to claim when filing your 2021 tax return in 2022.
If you’re 2021 MAGI is over the Child Tax Credit Income Thresholds, you may want to consider opting out to avoid disqualification of this credit and potentially having to pay it back on your 2021 tax return.
Consider opting out if the following apply to you:
● Child turns 18 by end of 2021
● Divorced or unmarried
● Want a bigger refund later
● Back to work and income in 2021 is much higher than in 2020
Give us a call or send us a message if you have questions or need help.