Advanced Child Tax Credit payments from the IRS
Beginning in July 2021, the IRS began sending payments to qualifying families. A qualifying family is one that has a dependent child aged 17 (in 2021) or younger that was claimed on the 2020 tax return.
The tax payments that the IRS is sending will be direct deposited or paid by check. Each payment is 1/12th of the full amount. Please keep track how much you receive.
- The full credit amount for 2021 per child aged 6 to 17 is $3,000.
- The full credit amount for 2021 per child aged under 6 is $3,600.
Credit phase out begins:
- $75,000 single or married filing separate
- $112,500 head of household
- $150,000 married filing joint.
How will this affect your 2021 tax return? The amount received will be offset against the full qualified amount. For example: One child aged 10 would qualify for $3,000. If the advanced credit of $1,500 was received for July – December, then the credit on the tax return would be $1,500.
If you have questions, please contact our office we are happy to help! 615-750-5537.