Policy Spotlight: What to Know about Advance Child Tax Credit Payments
Part of the American Rescue Plan signed by president Biden in March, the first of six monthly Advance Child Tax Credit (CTC) payments are scheduled to start arriving in bank accounts on July 15. What opportunities could you create for your kids with up to $300 per month per child?
Most parents qualify for and will receive the payments automatically. The IRS will pay half the total credit amount via the monthly payments. Eligible parents will claim the other half when filing 2021 income tax returns.
We outline below who’s eligible for how much — there is no cap on the number of qualifying children! — and when to expect the payments, plus we answer a few of the most common questions our TrustPlus Personal Finance Coaches are getting from clients.
How will I receive my money?
The IRS is using direct deposit banking information provided to them on your most recent tax return from 2019 or 2020 to determine where to send the money. You do not have to do anything to receive the payments if you’re eligible, you filed 2019 or 2020 taxes, and your deposit information is up to date. The IRS will mail a check to the address on file if they don’t have your direct deposit information.
What if I didn’t file 2019 or 2020 taxes?
If you did not file taxes in 2019 or 2020 and also did not use the IRS non-filer portal to access a stimulus check, use this link to update your information with the IRS.
What if I had a child or my income or marital status changed since I last filed my taxes?
If you had a child after filing your 2020 taxes, had a change in marital status, or experienced a drastic change in income, use this link to update your information with the IRS to make sure they send you the right amount of money (this option will be available shortly, according to the IRS). You can also use it to opt out of the monthly payments should you prefer to receive the entire CTC in lump sum when you file your taxes next year.
Are ITIN filers eligible?
Yes, ITIN filers with children who have Social Security Numbers do qualify!
Looking for recommendations on how to make the most of your Advance Child Tax Credit payments to help your family get ahead? Check out TrustPlus Personal Finance Coach Chris Capellan’s recent blog post. More questions? Check out IRS’ FAQ.
