Beginning July 15, 2021, many eligible families across the country will begin receiving advance payments related to changes made to the Child Tax Credit with the passing of the American Rescue Plan Act. The IRS will pay half the total Child Tax Credit amount in advance via monthly payments between July 15 and December 2021, unless eligible individuals/families opt out of receiving these payments in advance. You will claim the other half when you file your 2021 income tax return in 2022. These changes apply to tax year 2021 only. It is important you are aware of who qualifies and how to ensure you receive this tax credit in the way that best fits you and your household. Learn more by visiting our most frequently asked questions regarding the Advance Child Tax Credit.

What is the Child Tax Credit?

For 2021 ONLY, the Child Tax Credit provides a credit of up to $3,600 per child under age 6 and $3,000 per child from ages 6 to 17. For 2021, it is a refundable credit, meaning If the credit exceeds taxes owed, families may receive the excess amount as a refund. Fifty percent of the credit amount will be provided via advance payments on the 15th of each month beginning July 15 through December 2021 rather than as a lump sum at tax time. Families no longer need to have earned income to receive this credit for their children.

Prior years provided a Child Tax Credit of up to $2,000 per child age 16 and younger, with refunds limited to $1,400 per child. These parameters will be in effect again for 2022-2025. Learn more.

What are Advance Child Tax Credit payments?

Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season.

For 2021, the Child Tax Credit (CTC) provides up to $300 per month per child under age 6, and up to $250 per month per child ages 6 to 17. You can receive payments starting on the 15th of each month from July 2021 through December 2021. You will need to ensure you have filed a tax return for 2021 to receive payments and you will need to file a tax return in 2022 to receive the rest of the payment. Families may opt out of receiving these advance payments. Learn more. 

Does my child or dependent qualify for the Advance Child Tax Credit?

You qualify for Advance Child Tax Credit payments if you have a qualifying child or children, generally a child under the age of 18 that lives with you most of the time, and you or your spouse (if married filing a joint return) must have your main home* in one of the 50 states or the District of Columbia for more than half the year.

Eligible children for the Child Tax Credit must meet the following criteria:

• The child is your son, daughter, grandchild, stepchild or adopted child; younger sibling, step-sibling, half-sibling or their descendant; or a foster child placed with you by a government agency.
• The child was under 17 at the end of 2020.
• The child has a valid Social Security number.
• The child lived with you for more than half of 2021.
• The child did not provide over half of their own support for 2021.

Learn more.

How do I get the Advance Child Tax Credit payments?

To receive the Advance Child Tax Credit payments, the IRS needs to know current information about you and your children.

If you already filed a 2019 or 2020 tax return, or used the IRS Non-filer Portal in 2020 to claim your stimulus payments and had no major changes your household information, including your family situation, you do not have to do anything. In these instances, the IRS has enough information to send your family your Advance Child Tax Credit payments automatically.

If have not filed your 2019 or 2020 IRS tax return or used the non-filer portal, you can file a full return to ensure you claim and fully receive the Child Tax Credit, all three stimulus payments and any additional tax credits in which you may be entitled to receive. To explore free options for filing your taxes, visit the Financial Resilience Center Tax Page.

If you do not have a filing requirement and have not submitted any information to the IRS in the last year, you can submit your information through the IRS Non-Filer Sign-Up Tool and get your payments. Need additional help filing out the non-filer form? Get help here: How to Fill Out the IRS Non-Filer Form.

To make sure the IRS has the correct information on your current household, you may check on your eligibility, view advance payments or unenroll from getting advance payments through the Child Tax Credit Update Portal.