The American Rescue Plan Act (ARPA) expanded the Child Tax Credit for many families.
The details are a little complex, but essentially, families have started receiving advance payments of next year’s Child Tax Credit.
You may have already gotten a letter from the IRS explaining these payments.
Who Else Wants To Know About The New Child Tax Credit Advance Payments?
- For tax year 2021 (next year’s taxes), families who claim the Child Tax Credit will receive up to: $3,600 per qualifying child under 6 , $3,000 per qualifying child between 6–17.
- Half of that amount will be sent out as payments of up to $250 or $300 per child, on the 15th of every month between July and December this year.
- When it comes time to file your taxes next year, you’ll reconcile the amount you’re due to claim the remainder of the credit on your return or to pay back any overpayment, if applicable.
- If you don’t need to file a tax return, but qualify for this expanded credit, you can use the IRS’s Non-Filer tool to provide them with the information they need to deliver your payments.
There’s nothing you need to do to get your payment, unless you don’t usually file taxes. The IRS will calculate your amount based on your most recent return and either deposit it into your bank account or send a check to your address on file. (rybelsus)
For the most up-to-date information on the Child Tax Credit and advance payments, visit our office and talk to our Generational wealth specialist
You can also learn more by reading our post here.