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.

Advance Child Tax Credit payments were early payments sent to eligible taxpayers from the IRS of 50 percent of the estimated amount of the Child Tax Credit. The remaining amount of the Child Tax Credit due to eligible taxpayers will be provided when your file your 2021 tax return in the 2022 tax filing season.

For 2021, the Child Tax Credit (CTC) provided up to $300 per month per child under age 6, and up to $250 per month per child ages 6 to 17. These payments started on the 15th of each month from July 2021 through December 2021. Families were able to opt out of receiving the advanced payments. For everyone that is eligible, you will need to ensure you file a tax return for 2021 to receive the rest of the payment.

Note: Advance Child Tax Credit payment amounts are not based on the Credit for Other Dependents, which is not refundable. For more information about the Credit for Other Dependents, see Schedule 8812 (Form 1040), Credit for Qualifying Children and Other Dependents

For more information about how your Advance Child Tax Credit payments are calculated, see Topic D: Calculation of Advance Child Tax Credit Payments.

Visit IRS for more information on Advance Child Tax Credit Payments in 2021.

You qualify for the Child Tax Credit 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.

* Your main home can be any location where you regularly live. Your main home may be your house, apartment, mobile home, shelter, temporary lodging or other location and doesn’t need to be the same physical location throughout the taxable year. You don’t need a permanent address to get these payments. If you are temporarily away from your main home because of illness, education, business, vacation or military service, you are generally treated as living in your main home.

To qualify for the Child Tax Credit, you and your spouse, if you file a joint return, must:

• File a 2021 tax return and claim the Child Tax Credit on the return; AND
• Had your main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; AND
• Have a qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; AND
• Made less than certain income limits

No, the Child Tax Credit  is considered part of your tax refund so it will not impact eligibility for Federal programs like Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI). It is not counted towards means-tested resource limits for up to 12 months.

Letters 6416 and 6416-A (both named Advance Child Tax Credit Outreach letter) began being mailed out by the IRS in June 2021. These letters estimate Child Tax Credit amounts for tax year 2021 and tell taxpayers they may be eligible to receive advance CTC payments.

If you received one of these letters you should save these letters to reference when filing your 2021 tax return in 2022.

Internal Revenue Service (IRS) Resources:

Advance Child Tax Credits in 2021

Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions (FAQs)

Missing All or Some of  Your Child Tax Credit?

To claim any missing portion of your Child Tax Credit or any missing amount of your third stimulus payment, you can use the simplified tax filing tool (GetCTC.org) provided by CODE for America made in partnership with the White House and U.S. Department of Treasury. This tool provided in English and Spanish, will quickly and easily walk you through determining eligibility and filing to receive your missing payments.

• $1,400 for an eligible individual with a valid Social Security number;
• $2,800 for married couples filing a joint return if both spouses have a valid Social Security number or if one spouse has a valid Social Security number and one spouse was an active member of the U.S. Armed Forces at any time during the taxable year; or
• $1,400 for each qualifying dependent with a valid Social Security number or Adoption Taxpayer Identification Number issued by the IRS.

If the adjusted gross income (AGI) is not more than:

• • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
  • $112,500 if filing as head of household or; or
  • $75,000 for eligible individuals using any other filing status.

Payments will be phased out – or reduced – above those AGI amounts. This means people will not receive a 2021 payment if their AGI is at least:

• $160,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $120,000 if filing as head of household; or
• $80,000 for eligible individuals using any other filing status.

Other important items to note under the third round:

• Children and adult dependents claimed on tax returns within these households are also eligible for $1,400 payments, including college students and some people with disabilities, not just children under 17;
• Undocumented immigrants are not eligible to receive direct payments; and
• However, unlike previous rounds of payments, this Act would allow residents married to undocumented residents to receive stimulus payments.

On December 22, 2020, Congress approved a relief package which expanded EIP payments issued in 2020 as part of the Coronavirus Aid, Relief and Economic Security Act (CARES Act).

Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse, if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a Social Security number (SSN) valid for employment (see exception when married filing joint) and your adjusted gross income (AGI) does not exceed:

• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $112,500 if filing as head of household; or
• $75,000 for eligible individuals using any other filing status.

Your payment will be reduced by five percent of the amount by which your AGI exceeds the applicable threshold above.

You aren’t eligible for a payment if any of the following apply to you:

• You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).
• You don’t have an SSN that is valid for employment issued before the due date of your 2019 tax return (including any extensions).
• You’re a nonresident alien.
• People who died before 2020.
• Are an estate or trust.

NOTE: For round two payments, you will not get a payment for an adult child over the age of 17, or a parent who is your dependent, if they are claimed as a dependent on your tax return.

If you didn’t get a second payment or got less than the full amount, you may qualify for the 2020 Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.

Learn more about who is eligible to claim the Recovery Rebate Credit.

Visit the IRS’s 2020 Recovery Rebate Credit Frequently Asked Questions.

The Internal Revenue Service and the Treasury Department began delivering a second round of economic impact payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments in 2020. Payments began during the last week of December, 2020 while more payments occurred in early January 2021.

Direct deposit payments were made first to those individuals with a valid routing and account information on file. Mailed payments followed via paper check or a debit card.

If you didn’t get a first payment or got less than the full amount, you may qualify for the  2020 Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.

Learn more about who is eligible to claim the 2020 Recovery Rebate Credit.

For information on your first and second round payments, you may:

• View or create your IRS online account– An online IRS application that allows you to securely access your individual tax information including your first and second Economic Impact Payment amounts. The amounts of your Economic Impact Payments are found under the Tax Records tab/page. The Tax Records tab/page will show two separate amounts: the amount of your first economic impact payment (some received multiple payments so the amount shown will be the total) and the amount of your second payment. Even if you and your spouse received joint payments, your accounts online will show each spouse’s portion of the joint payments. Therefore, you and your spouse will need to sign into your own account to retrieve your separate amounts. OR
• Refer to IRS letters you received– IRS mailed Notice 1444 for the first Economic Impact Payment and Notice 1444-B for the second Economic Impact Payment to the address they have on file. If you received joint payments with your spouse, the letters show the total amount of each payment. If you file separate 2020 tax returns, each of you must enter half of the amount of the payment. OR
• Request and review your 2020 account transcript: You can request this online or by mail using Get Transcript. You may also call us at 800-908-9946 to have one sent by mail or you can submit Form 4506-T. If you received joint payments with your spouse, the transcript shows the total amount of each payment under the primary taxpayer. If you file separate 2020 tax returns, each of you must enter half of the amount of the payment.

Direct payments were made to eligible individuals based on the information the IRS had on file for your 2019 tax return, the information provided by you in the online Non-Filers: Enter Payment Info Here tool in 2020, payment information entered on the Get My Payment tool or information provided by a federal agency that issued benefits to you (Social Security Administration, Veteran Affairs or Railroad Retirement Board).

Payments for round one and round two have been distributed by the IRS and most recipients should have received their payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they should have received their second payment the same way.

Anyone who received the first or second round of payments, but didn’t receive a payment via direct deposit, should have received a check or, in some instances, a debit card.

IRS and Treasury have issued all first and second Economic Impact Payments. If you didn’t get a first or second payment or got less than the full amounts, you may qualify for the 2020 Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.

The fastest way to get your Recovery Rebate Credit (sent as a tax refund) is to file electronically and have it direct deposited into your financial account. You can use a bank account, prepaid debit card or alternative financial products for your direct deposit. You will need to provide routing and account numbers.

There are multiple ways for you to file your taxes at no cost to you and your family if you meet eligibility requirements. Free filing services are generally available to low- to moderate-income (LMI) persons with disabilities, the elderly and limited English speakers. However, eligibility requirements do vary, so please confirm prior to preparing and filing your taxes. Keep in mind you don’t have to be an expert to do your own taxes and you don’t have to do it alone. There are many free tax preparation options to help you get your refund and all the credits you’ve earned. Visit the Financial Resilience Center’s Tax Tips page to learn more. 

Keep in mind: Electronic filing, including Free File, is the best way to avoid pandemic-related paper delays. E-filing combined with direct deposit is the fastest way to get a refund.