Advance Child Tax Credit Payments in 2021
Over the last few months, there have never been some important changes made to the Child Tax Credit. Due to these changes, some families may receive a much-needed credit payment in advance.
- Half the total credit amount is being paid in advance monthly payments.
- Taxpayers claim the other half only when their 2021 income tax return is filed.
Bear in mind that advance payments will be sent automatically to eligible people. Taxpayers will not need to take any action if the IRS has their tax information. It is good practice to pre-determine which of your clients qualify for advance payments. Thus, giving you the opportunity to educate them on these changes to advance.
For questions regarding who qualifies for these credits please reference the IRS website. For additional information on when payments will be distributed, click here.
You can also find more information & scenarios in this blog post.