Starting July 15th, families with qualifying dependents will begin receiving advance monthly payments of the Child Tax Credit. You’ll receive half of your estimated credit between July and December, then the rest when you file your tax return in 2022. Here’s what you need to know.
How much will I receive as a monthly payment?
The maximum monthly payment is $300 for each qualifying child aged 5 or younger and $250 for those aged 6 to 17. Sometime soon, you’ll be receiving a Letter 6417 from the IRS stating the amount of your estimated payments.
What do I need to do to receive the advance payments?
Most eligible families will receive their payments automatically. The IRS will use the information from your 2020 or 2019 tax return to determine eligibility. However, those who are eligible for a payment, but usually aren’t required to file will need to use the IRS Non-filer tool to provide their information.
How will I be paid?
If the IRS already has your banking information on file, you’ll most likely receive your payments via direct deposit. Otherwise, expect a check in the mail. Your bank information will come from either your 2020 or 2019 tax return, the Non-Filer tool, or a third-party like the Social Security Administration if you receive federal benefits.
The IRS strongly recommends filing your 2020 return as soon as possible if you haven’t already so they have your current banking information, and you receive the payment you deserve. If you still need to file, do your taxes with ezTaxReturn now. It’s the fastest and easiest way to e-file your return.
What is the payment schedule?
According to the IRS, the payments will be issued on July 15th, August 13th, September 15th, October 15th, November 15th and December 15th.
Can I opt out?
Some people rather receive a lump sum of cash at tax time instead of the advance monthly payments. If you’re one of those people, you can use the Child Tax Credit Update Portal (CTC UP) to opt out of the payments.