FAQ Advance Payment of Child Tax Credit
The advance payment of the child tax credit will begin on July 15th, 2021. Many different factors could affect how the IRS will determine your Advance Payments of the Child Tax Credit. Therefore, the IRS has been addressing some of those situations on their website.
Click the links in the headers sections to see the information provided by the IRS. Use this page as a guide to help you find the information that applies to your unique situation and the effect it may have on your 2021 tax return.
This FAQ section addresses why it may be beneficial for you to unenroll from advance payments, deadlines for opting out the advance payment, the time it takes the IRS to process the request, instructions for unenrollment for married filing joint taxpayers, etc.
This FAQ section addresses how the Child Tax Credit is reconciled on your 2021 return, situations in which you may be required to pay back the advance payment, the requirements for each filing status to have repayment protection, and information that will be provided by the IRS to reconcile the credit on your 2021 tax return.
This FAQ section addresses the amount of the child tax credit for 2021, income limitations on the increased payment amount, and phaseout calculations for those that will have income above the limitations.
This FAQ section addresses how advance payments are determined by the IRS and how much of the credit you will receive in advance.
This FAQ section addresses what to do if you have changes to your bank, mailing address, income, or dependents from your 2020 return, and how to update that information with the IRS.
This FAQ section addresses if you have past due balances of taxes, child support, garnishment, or identity theft. They address your eligibility to receive the child tax credit advance payments if any of the situations above apply to you.
This FAQ section is most frequently updated for new information about the child tax credit for 2021.
This link will bring you to a complete list of the Child Tax Credit FAQ’s that the IRS has addressed thus far.