Adavance Child Tax Credit
Beginning in July 2021, the IRS will begin sending HALF of the child tax credit refund amounts in cash to eligible families.
Normally, parents will have the child tax credit ($3600 for children under 6, $3000 for children 6 and older) applied to their annual tax bill. However, due to the Covid-19 pandemic and the financial hardship that many families are facing, Congress approved for parents to receive half of that amount up front, while the other half will be credited to their taxes as a deduction.
For households with children under 6, they will receive $300 a month per child under 6 for the next 6 months beginning in July. For households with children between the ages of 6 and 17, they will receive $250 per child in that age group a month for the next 6 months.
Eligibility
To be eligible for the full Advance Child Tax Credit, you must:
Earn equal to or less than $75,000/yr as a single person or $150,000 as a couple;
Filed your 2019 or 2020 taxes and claimed the child tax credit OR provided the IRS with a 2020 Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool (Please note, if you did submit the tool by November 21, 2020 the IRS may not be able to send you the advance child tax credit until you file 2020 federal taxes. If you were tax exempt last you and did not file for the Economic Impact Payment, you may be eligible for the Recovery Rebate Credit.)
Have a registered address in the United States that you’ve lived in for at least 6 months.
If you missed the window to submit for the 2020 Economic Impact Payment last year, you can either file your 2020 taxes, or if you are tax exempt and will not be filing taxes you can use the Non-filer Sign Up Tool made specifically for the Advance Child Tax Credit. Please note, that single person households that earn less then $12400/year or married couples that earn less than $24,000/year are tax exempt meaning they do not have to pay federal taxes. If you are unsure if you are tax exempt, please use the IRS Do I Need to File A Tax Return Tool.
For more information on the Advance Child Tax Credit or check your eligibility, please click here.