This credit has changed in many ways:  (Compiled 6/17/2021)
  • Dependent children under 18 by December 31, 2021 qualify for the child tax credit now. (The child used to have to be under 17). Children must have a Social Security Number by end of tax season April 15, 2022.
  • Families no longer need to have earned income to receive the credit for their children.
  • The credit amounts changed from a maximum benefit of $2,000, of which only $1,400 could be refundable in 2020, to a maximum credit now of $3,600 per child ages 0-6 (under 7 by December 31, 2021) and $3,000 for children ages 7-17 (under 18 by December 31, 2021) AND the full amount of the credit may be refundable if you have no income tax liability. (Higher income families may have a reduced credit)
  • Advance Payment of this 2021 credit will be sent to eligible families monthly from July 15th through December of 2021.
    • The amount sent monthly will be estimated based on the family’s 2020 tax return (or 2019 if 2020 had not been filed).
    • The credit amount sent will be half of the estimated credit for 2021 divided into 6 equal payments-one sent each month from July through December. This credit is up to $250-$300 per child, depending on the child's age and family's income.
    • The remainder of the credit will be issued as a refundable credit on the 2021 tax return.
    • Families can choose to op-out of receiving these advanced payments. 
    • Families that have NOT filed a 2019 or 2020 tax return and wish to receive the monthly advanced payments MUST file a 2020 tax return right away!!!
*Taxpayers should receive a letter from the IRS in June letting them know what their advanced child tax credit payments will be, and another IRS letter in January 2022 informing them of the total Child Tax Credit disbursed in 2021. This letter will be used by taxpayers to reconcile advance Child Tax Credit payments with the amount of Child Tax Credit taxpayers qualify for on their 2021 tax return. (IRS letter 6419) but as we know, a lot of people do not get, or lose their forms.To qualify for the Advanced Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have:
  • Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
  • Given us your information in 2020 to receive the Economic Impact Payment using the Non-Filers: Enter Payment Info Here tool; and
  • A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
  • A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number*; and
  • Made less than certain income limits.

*Taxpayers should receive another IRS letter in January 2022 informing them of the total Child Tax Credit disbursed in 2021. This letter will be used by taxpayers to reconcile advance Child Tax Credit payments with the amount of Child Tax Credit taxpayers qualify for on their 2021 tax return. (IRS letter 6419) but as we know, a lot of people do not get, or lose their forms.

*Taxpayer and/or spouse can have either Social Security numbers or ITIN numbers.
Financial Impact on Families-Click on Image
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  • Please make sure you track ALL advanced payments you receive in 2021 from both the Child Tax Credit AND Stimulus Payments. 
  • You will be asked to provide this information to your tax preparer.
  • Entering the incorrect amount may cause very long delays in processing your 2021 tax return.
​*Taxpayers should receive another IRS letter in January 2022 informing them of the total Child Tax Credit disbursed in 2021. This letter will be used by taxpayers to reconcile advance Child Tax Credit payments with the amount of Child Tax Credit taxpayers qualify for on their 2021 tax return. (IRS letter 6419) but as we know, a lot of people do not get, or lose their forms.
Samples of the two CTC letters being distributed in June 2021 and January 2022 can be found on IRS.gov on this page: irs.gov/individuals/understanding-your-letter-6416-or-letter-6416-a
To make sure families have easy access to their money, the IRS will issue these payments by direct deposit, as long as correct banking information has previously been provided to the IRS. Otherwise, people should watch their mail around July 15 for their mailed payment.​ The dates for the Advance Child Tax Credit payments are July 15, Aug. 13, Sept. 15, Oct. 15, Nov. 15 and Dec. 15.
  • Please make sure you track ALL advanced payments you receive in 2021 from both the Child Tax Credit AND Stimulus Payments.*
  • You will be asked to provide this information to your tax preparer.
  • Entering the incorrect amount may cause very long delays in processing your 2021 tax return.
*Taxpayers should receive another IRS letter in January 2022 informing them of the total Child Tax Credit disbursed in 2021. This letter will be used by taxpayers to reconcile advance Child Tax Credit payments with the amount of Child Tax Credit taxpayers qualify for on their 2021 tax return. (IRS letter 6419) but as we know, a lot of people do not get, or lose their forms.
The IRS will use information provided on your 2020 tax return, or 2019 if you did not file your 2020 return, to determine if you qualify for the advanced payments and they will automatically enroll you for advance payments. You do not need to take any additional action to get advance payments.

However, if you did not file a 2020 or 2019 tax return and did not give the IRS your information in 2020 to receive the Economic Impact Payment using the [Non-Filers: Enter Payment Info Here tool] AND  you qualify for advanced child tax payments AND wish to receive them, you must file a 2020 tax return right away!

You can still file your 2020 taxes, it is not too late! Here are a few options to file your 2020 return: Or, if you need more assistance or do have a filing requirement and haven't filed yet, try one of these options:
  • Call your local 2-1-1 to see if there is a tax site open to serve you in person. (In Lee County Florida you can call 239-433-3900. In Hendry County Florida call 239-433-7560).
  • Let Us File for you 100% virtually – Complete an online intake form and upload photos or scans of your documents into our secure site and our IRS VITA certified volunteer tax preparers will complete the return for you at getyourrefund.org/uwlee 
  • File yourself for FREE online at MyFreeTaxes.Com​
NEW!!  There are now tools to help you check your eligibility and manage and unenroll (opt-out) from advance child tax credit payments AND update your bank information visit ​irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021​ At some point later in the year, taxpayers will be able to update other information, such as mailing address, number of qualifying children, marital status and/or income. 

To get up-to- date information from the IRS, check out their following webpages: pages may be updated periodically as they develop new resources/tools)
From Code for America: Recently, the American Rescue Plan made the Child Tax Credit even more valuable to families by increasing the amount of the credit, expanding who is eligible to receive it, and providing advance monthly payments of the credit. Understanding tax credits and how to access them has never been easy. That's why we've launched GetCTC.org. GetCTC is designed to take the mystery out of the expanded CTC and connect communities to the information and resources they need in order to take advantage of this powerful credit. Please help us by sharing this resource with your networks.  (In English & Spanish)
Dependents that DO NOT qualify for the Child Tax Credit may qualify for the Credit for Other Dependents. This credit is for dependent children who do not have social security numbers or who are over age 17, and others claimed as dependents. This is a $500 non-refundable credit that can only be used to pay tax liability on a return. There are no advanced payments for this credit. To get this credit, you need to file your 2021 taxes. Learn more about the Credit for Other Dependents at irs.gov/newsroom/you-may-benefit-from-the-credit-for-other-dependents
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You can contact me at maryvitataxes@gmail.com 
Please note: I, Mary Meador, AM NOT a certified accountant or tax law expert. I volunteer with VITA providing free tax preparation for individuals and families whose income is less than $66,000 a year. We deal with simple returns at our sites.  I cannot guarantee the accuracy of all the information on this site as tax laws change and I may not have a clear understanding of complicated issues. I am trying to provide basic tax preparation information for our volunteers to get started--remember Publication 4012 is your go-to resource for questions, as well as irs.gov and Publication 17. ​