The IRS will pay half of the child tax credit with advance monthly payments starting July 15th.
The other half you will get when you file your 2021 income tax return.
The credit is $3,000 for qualifying children ages 6 to 18 and $3,600 for children under age 6.
In order to qualify for the child tax credit, your dependent child must be under the age of 18, and must be a son, daughter, adopted child, foster child, brother, sister, stepbrother, or a descendant of any of them such as a grandchild, niece, or nephew.
The qualifications for the advance child tax credit payments are as follows:
1) You filed a 2019 or 2020 tax return and claimed the child tax credit on the return or have given the IRS your information in 2020 to receive the economic impact payment using the non-filers: “Enter Payment Info Here Tool”
2) Your main home was in the United States for more than half the year or you file a joint return with a spouse whose main home was in the United States for more than half the year.
3) You had a qualifying child who is under age 18 at the end of 2021 and who has a valid social security number.
4) Your income falls within the income limits. To avoid the phase out of the child tax credit, your adjusted gross income needs to be less than $75,000 for single filers, $150,000 for married filing jointly filers, and $112,500 for head of household filers. If you qualify, the IRS will automatically enroll you for the advance payments and no additional action is necessary.
However, you can opt out of the advanced child tax credit payments with a portal that the IRS plans to make available by July 1st at www.irs.gov/childtaxcredit2021.