This credit has changed in many ways: (Compiled 6/17/2021)
*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:
*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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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
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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.
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:
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)
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You can contact me at maryvitataxes@gmail.com
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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.
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