IRS to begin sending letters to families who qualify for monthly Child Tax Credits; payments start July 15

Families who are eligible for advance Child Tax Credit payments will receive a second, personalized letter listing an estimate of their monthly payment, which begins July 15.  Eligibility is based on either their 2019 or 2020 federal income tax return or those who used the non-filers tool to register for economic stimulus payments.  The IRS urges individuals and families who haven’t yet filed their 2020 return – or 2019 return – to do so as soon as possible so they can receive any advance payment they’re eligible for.

Most families do not need to take any action to get their payment. Normally, the IRS will calculate the payment amount based on the 2020 tax return. If that return is not available, either because it has not yet been filed or it has not yet been processed, the IRS will instead determine the payment amount using the 2019 return.  

Eligible families will begin receiving advance payments, either by direct deposit or check. The payment will be up to $300 per month for each qualifying child under age 6 and up to $250 per month for each qualifying child ages 6 to 17. The IRS will issue advance Child Tax Credit payments on July 15, August 13, September 15, October 15, November 15 and December 15.

Throughout the summer, the IRS will be adding additional tools and online resources to help with the advance Child Tax Credit. One of these tools will enable families to unenroll from receiving these advance payments and instead receive the full amount of the credit when they file their 2021 return next year.  For parents who alternate the dependency exemption for their children it will be important for them to unenroll for children they will not be claiming in 2021 to avoid an increase in tax liability at year end.

Additionally, later this year, individuals and families will also be able to go to IRS.gov and use a Child Tax Credit Update Portal to notify IRS of changes in their income, filing status, or number of qualifying children; update their direct deposit information; and make other changes to ensure they are receiving the right amount as quickly as possible.

You may want to look at your current withholding to determine if an adjustment should be made as a result of the additional credit.

See the link below for additional FAQs on the CTC.  

Click here for the CTC FAQs

Update – You now have the ability to unenroll for the advanced child tax credit here.   You will need to log in to your current IRS account or set up a new one.  There will be several identification questions and you may need a photo id ready.  Please see the link below.

https://www.irs.gov/credits-deductions/child-tax-credit-update-portal