New for 2021: Advance Child Tax Credits will begin being processed by the IRS starting July 15th and will be paid monthly on the 15th until the end of the year.
The IRS will be sending out letters letting you know what you qualify for based on your 2020 tax return (if filed) or your 2019.
Payments will vary depending on the age of your child(ren) as of 12/31/21:
For children aged 0-5 years old: $300/month (for a total of $3,600 per qualifying child and 50% paid in advance)
For children aged 6-17 years old: $250/month (for a total of $3,000 per qualifying child and 50% paid in advance)
Under the prior law, and what will occur for 2022 unless additional changes are made, the credit was up to $2,000 per child.
Phase-outs will still occur your income is above $150,000 for married filing jointly, $112,500 for head of household, and $75,000 for all other taxpayers (qualifying widows or widowers follow the married filing joint phase-out).
The IRS is expected to open a portal (link below) for anyone who would prefer to opt out and instead receive the full credit with their 2021 tax return. You will also be able to make the following changes using this portal once it opens:
Allow people to check on the status of their payments
Make updates to their information (change your income, change filing status, change the number of qualified children, and change direct deposit information)
Will be available in Spanish
If you receive these advanced payments, be sure to keep your letter for tax time.