As we previously explained in a prior blog post, The American Rescue Plan Act of 2021 makes substantial, temporary improvements to the child tax credit for 2021, which may increase the amount you might receive .The IRS will now be paying taxpayers the Child Tax Credit on a monthly basis rather than including it all on the annual tax return. They are scheduled to start being issued on July 15, 2021. The monthly amount will be $250 for children ages 6 to 17 and $300 for children under 6 in families receiving the full credit. You may also be able to claim a partial credit for certain other dependents who are not qualifying children.
You will automatically be enrolled for these payments, but to manage your payments, ensure the bank account is correct OR to opt-out, please access this portal www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021.
There is a downside! Anybody who receives the advance payment for which they are not eligible may have to repay these advances when they file their 2021 return. The most conservative approach is to unenroll. Please note though, that if you unenroll, then you can’t re-enroll.
Additional information about the Child Tax Credit portal is available at: https://content.govdelivery.com/accounts/USIRS/bulletins/2e50c8e
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