Important changes to the Child Tax Credit will help many families get advance payments of the credit starting this summer. The IRS will pay half the total credit amount in advance monthly payments beginning July 15. You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.
The Additional Child Tax Credit Opt-Out tool is available: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021
Unenrolling from Advance Payments:
If you are filing Married Filing Joint, both spouses must unenroll (opt-out). If you do not both unenroll and only one spouse is unenrolled, you will get half of the joint payment you were supposed to receive with your spouse. Read more about the requirements here: https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-j-unenrolling-from-advance-payments
Deadline to Unenroll (you cannot re-enroll):
2021 Child Tax Credit and Advance Child Tax Credit Payments Frequently Asked Questions
There have been important changes to the Child Tax Credit that will help many families receive advance payments. The American Rescue Plan Act (ARPA) of 2021 expands the Child Tax Credit (CTC) for tax year 2021 only. Here is a link to the IRS Frequently Asked Questions: https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions
If you have any questions on the 2021 Child Tax Credit and Advance Child Tax Credit Payments please give us a call at 330-453-7633.