James D. Lynch
Advance Child Tax Credit Payments in 2021
For tax year 2021, families claiming the Child Tax Credit for tax year 2021 will receive up to $3,000 per qualifying child between the ages of 6 and 17 and $3,600 per qualifying child under age 6. This is up from $2,000 per child in 2020.
Advance payments of the 2021 Child Tax Credit will be made regularly from July through December. The total of the advance payments will be up to 50 percent of the total Child Tax Credit. So, for a child between the ages of 6 and 17 the taxpayer will receive monthly advance payments in the amount of $250 from July to December, which is a total of $1,500 over the six-month period (50% of the total $3,000 tax credit), and then the taxpayer will receive the other $1,500 when they file their 2021 tax return and receive their tax refund in 2022. For a child under the age of 6, the monthly advance payments will be $300 from July to December, for a total of $1,800, and the other $1,800 will come in 2022 with their tax refund.
The credit begins to phase out when a taxpayer’s income exceeds $75,000 as a single filer, $112,000 as head of household, or $150,000 filing jointly. Taxpayers who receive a larger advance than they’re eligible for will generally have to repay the excess. This may occur, for example, if the taxpayer gets a higher-paying job in 2021. Taxpayers can opt out of the advance payments.
Advance payments will be estimated from information included in eligible taxpayers' 2020 tax returns, so the IRS urges people with children to file their 2020 tax returns as soon as possible to make sure they are eligible for the appropriate amount. Eligible taxpayers do not need to take any action to receive the advance payments other than to file their 2020 tax return if they have not done so.