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 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.

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 IRS Publication 972, Child Tax Credit and Credit for Other Dependents PDF.

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 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.

* 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 Advance Child Tax Credit payments, you and your spouse, if you filed a joint return, must have:

• Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; OR
• Given IRS your information in 2020 to receive the Economic Impact Payment using the Non-Filers Sign-Up Tool; OR
• Given IRS your information in 2021 with the Non-Filer: Submit Your Information Tool; 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

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.

If your family situation has changed, you will soon be able to use the IRS CTC Update Portal to:

• Update the number of eligible dependents in your household (for example, if a child has moved out).
• Report significant changes in household income.
• Opt out of receiving monthly payments and choose to receive the payment next year when you submit your 2021 tax return. You might choose to opt out of receiving monthly Child Tax Credit payments if:
  • You would prefer to receive your credit in one payment in 2022.
  • Your bank information or address has changed in the last year.
  • You do not plan on claiming dependents on your 2021 tax return (2022 tax season). For example, if you share custody with someone else and alternate who claims the child as a dependent.
• Initially, this portal will only allow taxpayers to unenroll or elect not to receive Advance CTC during 2021. LATER IN THE YEAR, taxpayers will be able to update other information, such as mailing address, bank account info, number of qualifying children, marital status and/or income.

If the IRS has received your banking information (from prior tax returns or other IRS online tools), your payment will be sent to you as a direct deposit to your account on record.

Otherwise, payments will be made via check (by mail) or via debit card (initially via mail or electronic refill).

It is very important to ensure the IRS has your correct information on file.

No, the Advance Child Tax Credit payments are an advance payment of your 2021 Child Tax Credit and is not considered income; it 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 may be eligible to receive Advance Child Tax Credit payments based on information included in your 2020 tax returns (or your 2019 returns if the 2020 returns aren’t filed and processed yet). You should save these letters to reference when filing your 2022 tax returns.

Internal Revenue Service (IRS) Resources:

Advance Child Tax Credits in 2021

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

GetCTC.org Resources:

Visit Website: getctc.org/en
Visit Spanish version of website: getctc.org/es

Consumer Financial Protection Bureau (CFPB) Resources:

Decision tree on whether or not you need to take additional steps to receive your Child Tax Credit

Top 5 Things You May Not Know about the Advance Child Tax Credit

Volunteer Income Tax Assistance (VITA)/United Way Resources:

2021 Child Tax and Dependent Care Credits

Due to new income limitations, some individuals won’t be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit.

Generally, someone is eligible for the full amount:

• $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 this 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.

Most eligible individuals will get their third Economic Impact Payment automatically and won’t need to take additional action. The IRS will use available information to determine your eligibility and issue the third payment to eligible people who:

• Filed a 2020 tax return;
• Filed a 2019 tax return if the 2020 tax return has not been submitted or processed yet;
• Did not file a 2020 or 2019 tax return, but registered for the first Economic Impact Payment with the Non-Filers tool in 2020; or
• Are federal benefit recipients who do not usually file a tax return. The IRS is working with Federal agencies to get updated information to issue the 2021 Economic Impact Payment at a date to be determined.

The third round of Economic Impact Payments are being sent in phases. The IRS started sending the first batch of payments with an official payment date of March 17. If you haven’t received one yet, it doesn’t mean you won’t.

Third payments will be sent each week to eligible individuals as they continue to process tax returns. Payments are sent by direct deposit or mailed as a check or debit card.

IRS is issuing the third payments in phases.

Find when and how your third Economic Impact Payment is being sent with the “Get My Payment” application. Get My Payment updates once a day, usually overnight.

You’ll see one of these messages when you use Get My Payment.

Payment Status:

Your payment has been processed and it will be sent on the date shown by direct deposit or mail. If your payment is by mail, you will receive an EIP Card (debit card) or a check. The amount of your third Economic Impact Payment is not shown.

OR

You’re eligible, but a payment has not been processed and a payment date isn’t available yet.

Payment Status Not Available: We haven’t yet determined your eligibility or you’re not eligible for a payment.

Need More Information: Your payment was returned to the IRS because the Postal Service was unable to deliver it. If you get this message, you can use the Get My Payment to enter your bank account information for direct deposit.

You may also have questions answered regarding “Get My Payment” tool in Get My Payment Frequently Asked Questions.

Unfortunately, IRS is advising to not call them regarding third round payments as their phone assistors do not have information beyond what’s available on IRS.gov.

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.

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

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 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 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.

Visit the IRS Q&A page for additional information.

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

• View or create your online account – Securely access your individual tax information with an IRS online account including your first and second Economic Impact Payment amounts.
• 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.

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.

IRS began accepting tax returns February 12, 2021. They also recently announced that the federal income tax filing due date for individuals will be automatically extended from April 15 to May 17, 2021.

Learn more about Tax Day extension.

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.