2021 U.S. Advance Child Tax Credit Payment Interpretation
A major change has taken place in the U.S. child tax credit in 2021. This change is that the IRS has begun to issue advance payments for the 2021 child tax credit to taxpayers who qualify for the 2021 child tax credit.
From July to December of 2021, half of the total child tax credit in 2021 will be issued to eligible taxpayers monthly. The release dates proposed by the IRS are: 07/15, 08/13, 09/15, 10/15, 11/15 and 12/15. The remaining half will be applied by taxpayers when submitting the 2021 tax return.
From July to December 2021, taxpayers who qualify for the 2021 child tax credit can receive the monthly advance payment as shown in the figure below:
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child age requirements (as of 12/31/2021)
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the child tax credit advance payment per month that each eligible child can receive (July-December)
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the total amount of child tax credit for each eligible child in 2021 (TCTC)
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0-5 years old
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each child can receive up to $300 per month
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each child can receive up to $3,600
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6-17 years old
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each child can receive up to $250 per month
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each child can receive up to $3,000
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The taxpayer has filed the 2002 tax return.
The IRS usually obtains taxpayers?bank account information in the order of the following methods. Then, the IRS will deposit the advance payment of 2021 child tax credit directly into taxpayers?bank accounts each month:
- The taxpayer has filed the 2002 tax return.
- The taxpayer has not filed the 2020 tax return but has filed the 2019 tax return. In addition, it also includes information that the taxpayers entered into non-filer on IRS.gov in 2020.
- If a taxpayer does not file a 2019 and 2020 tax return, the IRS will obtain the taxpayers?bank account information from federal agencies that provide taxpayer benefits, such as the Social Security Administration and the Railroad Retirement Board.
If the IRS is unable to obtain taxpayers?bank account information through the above three methods, the IRS will mail an advance child tax credit check to eligible taxpayers every month based on the proposed release date.
The advance payment of the child tax credit released in 2021 is not the taxpayer’s 2021 income. Therefore, it will not be reported as income in the taxpayers?2021 tax return. The advance payment of the 2021 child tax credit is only the advance payment of the taxpayers?2021 child tax credit.
Eligibility for advance child tax credit payment must meet all the following requirements from July to December 2021
- As of 12/31/2021, taxpayers have at least one eligible child under the age of 18 who has a social security number.
- The taxpayers?income is below a certain income limit.
- When taxpayers file their taxes separately, the taxpayer lived in the U.S. Main residence for more than half a year in 2019 or 2020. When the taxpayer and spouse file jointly, the taxpayer and spouse lived in the U.S. Main residence for more than half a year in 2019 or 2020.
In addition, the advance child tax credit payment eligibility also needs to meet one of the following requirements
- Taxpayers have filed a 2019 or 2020 tax return and declared the child tax credit on the tax return. In addition, taxpayers will also declare child tax credits on their 2021 tax returns in the future.
- When taxpayers receive economic impact payment in 2020, they have already provided some necessary basic information to the IRS through Non-Filer.
- Taxpayers have already provided some necessary basic information to the IRS through Non-Filer in 2021.
If taxpayers want to check whether their family is eligible for advance payment of the child tax credit, they can also check through the query tool "Advance Child Tax Credit Eligibility Assistant? https://www.irs.gov/credits-deductions/advance-child-tax-credit-eligibility-assistant by the IRS.
Reference:
https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-e-advance-payment-process-of-the-child-tax-credit
https://www.irs.gov/newsroom/irs-monthly-child-tax-credit-payments-begin
https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-a-general-information
https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
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