The American Rescue Plan Act of 2021 increased the amount of the Child Tax Credit for most taxpayers from $2,000 to $3,000 for the 2021 taxable year only.   The credit is increased to $3,600 if a qualifying child is under 6 years at the end of the year.

The Child Tax Credit is now available through advanced payments from July 2021-December 2021. Many people are already receiving payments. IRS.GOV has more information, along with tools to help answer common questions.

Generally, the credit is being sent to eligible families who (1) filed either a 2019 or 2020 federal income tax return or (2) who provided their information to the IRS to get Economic Impact Payments through the IRS Non-Filer Tool last year.

If you did not file a 2020 tax return, because you don’t make much money and aren’t required to, you can still get the credit.   You can use the IRS Child Tax Credit Non-Filer Sign Up Tool through October 15, 2021 to give the IRS the basic information it needs to send you the advance Child Tax Credit payments.

To be eligible, you need to have a qualifying child and meet some income rules (explained in other questions).   Generally a child qualifies you for the credit if the child meets these rules:

• The child is your son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or any descendant of any of them.
• The child was no older than 17 at the end of 2020.
• The child did not provide over half of his or her own support for 2020.
• The child lived with you for more than half of 2020 (some exceptions apply).
• The child is claimed as a dependent on your tax return.
• The child does not file a joint tax return for the year.
• The child was a U.S. citizen, U.S. National or a U.S. resident alien.
• The child has a Social Security number.

The IRS has developed an Advanced Tax Credit Eligibility Assistant Tool to help people figure out whether they may be eligible.

The adjusted gross income in 2021 must be under $75,000 for single filers, under $150,000 for married filing jointly, and under $112,000 for head of household filers.  Phase out begins if you earn above these amounts.

There are no earned income requirements for 2021.  You are eligible if you receive the child tax credit even if you do not have income or just have a little income from Social Security, as long has you have a qualifying child.

Yes, children born in 2021 are eligible for the Child Tax Credit.

Possibly.  If your mother is supporting the children she can claim the children if she is income eligible and they live with her more than half the year.

If your child is living with the other parent in 2021 you are probably not eligible for the 2021 Child Tax Credit. If you have a custody or divorce court order which includes provisions about who gets to claim dependents, please consult an attorney.

If the Child Tax Credit was claimed by both parents, the credit would go to the bank account used for the 2020 tax refund if you selected direct deposit. If the 2020 tax refund was sent by check, the check will be mailed to the address of record on your last tax return. If you have a custody or divorce court order which includes provisions about who gets to claim dependents, please consult an attorney.

Yes, if you are a legal resident of the U.S. and pay taxes and have a Social Security number or an Individual Taxpayer Identification number (ITIN) you are eligible to receive the Child Tax Credit for your children who are U.S citizens.

Yes, many eligible families have already received a portion of the credit in advance starting in July 2021. These families will continue to get the advance payments monthly through December 2021.  They will receive the rest when they file their 2021 taxes, in 2022.

The advance payments are distributed monthly between July and December 2021. These are the payment dates:

• July 15, 2021
• August 13, 2021
• September 15, 2021
• October 15, 2021
• November 15, 2021
• December 15, 2021

That depends on each taxpayer’s situation. It won’t be an easy calculation either, as it depends on each individual person’s household factors. It will depend on things like:

• adjusted gross income, and
• the number and age of qualifying children.

Also, the advanced payments can generally, with some exceptions, only be issued in equal amounts, that are up to 50 percent of the credit of the estimated eligible total credit for each taxpayer situation.

You can go to the Child Tax Credit Update Portal to unenroll or opt out from receiving the monthly payments.  You will be able to elect a lump sum payment to be received in 2022 when you file your 2021 tax return.

Even after the advance payments have begun, you can stop all future payments using the Child Tax Credit Update Portal. If you decide to stop payments after they have begun, you will still receive the rest of your child tax credit as a lump sum when you file your 2021 tax return next year.

Some possible reasons to unenroll or opt out of the monthly payments include the following:

• your income increases significantly in 2021 making you income ineligible for the Child Tax Credit or
• an ex-spouse or other family member qualifies to claim the child as a dependent in 2021.

If you will not be claiming the child for 2021, you should unenroll from receiving the advanced monthly Child Tax Credit payments. If you do not unenroll, you will have to pay back the money the next year.  You should also complete IRS Form 8332 Release/Revocation of Release of Claim to Exemption by Custodial Parent. If you have a custody or divorce court order which includes provisions about who gets to claim dependents, please consult an attorney.

Yes, unrolling only applies to the individual. You and your spouse would both need to unenroll.

No, the Local Taxpayer Advocate will not assist with unenrollment or help with the Non-Filer sign up tool on IRS.GOV. Please follow the instructions provided on the IRS website.

The IRS has developed the Child Tax Credit Update Portal to allow families to update certain information with the IRS. As of September 1, 2021, this Portal has limited functions.  Right now, it gives families the ability to change bank account information, unenroll for the advanced monthly payments, and update mailing addresses.  The IRS is scheduled to add an option later this year to allow you to:

• Add or subtract the number of your qualifying children, including by reason of the birth or adoption of a child; and
• Report a change in your marital status;

Keep checking back to IRS.gov for updates.

After the child is born or adopted, you can provide this new qualifying child information to the IRS in two ways.  First, you can wait to provide the information to the IRS in 2022 when you file your 2021 tax return. Second, in the near future the Child Tax Credit Update Portal will allow you to tell the IRS about the qualifying children you will claim on your 2021 tax return so that the IRS can adjust your estimated 2021 Child Tax Credit and adjust the amount of your monthly advance Child Tax Credit payments. Please keep checking for updates on IRS.GOV.

If you do not receive advance  payments for a qualifying child in 2021, you may claim the full amount of your allowable Child Tax Credit for that child when you file your 2021 tax return in 2022.

Update your address information using the Child Tax Credit Update Portal on IRS.GOV.

Update your bank account information using the Child Tax Credit Update Portal on IRS.GOV.

• September- 08/30/21 for the payment date of 09/15/21
• October- 10/04/21 for the payment date of 10/15/21
• November- 11/01/21 for the payment date of 11/15/21
• December- 11/29/21 for the payment date of 12/15/21

Provide your bank account information using the Child Tax Credit Update Portal on IRS.GOV.

The IRS is scheduled to add this option to the Child Tax Credit Update Portal. Please check for updates on IRS.GOV.

You should still file and claim the child tax credit.  If you are owed a refund, there is no penalty for filing late.

If you are not required to file taxes and did not file in 2019 or 2020, you can use the IRS Child Tax Credit Non-Filer Sign Up Tool to give the IRS the basic information needed to issue the advance Child Tax Credit payments.

For low income families, you may be able to get help in person from a very limited number of Volunteer Income Tax Assistance sites that are still open.

If you want to file online, you can go to myfreetaxes.com or the IRS Free File website which shows you a lot of options for filing online.

Yes. If you are not required to file taxes and did not file in 2019 or 2020, you can use the IRS Child Tax Credit Non-Filer Sign Up Tool to give the IRS the basic information needed to issue the advance Child Tax Credit payments.

Complete IRS Form 3911 Taxpayer Statement Regarding Refund. Send it to the IRS.  If you live in West Virginia, you mail the form to the Department of the Treasury, Internal Revenue Service Center, Kansas City MO 64999-0002.

Yes, materials are available in Spanish and other languages through IRS.GOV.

Letter 6419 is a year-end summary statement. The IRS will send letter 6419 to all taxpayers who have received the advance Child Tax Credit payments in 2021.  You will need the information on Letter 6419 to accurately complete your 2021 federal income tax return next year.  When you receive Letter 6419, please keep it for your records.

Right now, the increased amounts are for the 2021 tax year only.