The IRS has already sent out three separate stimulus checks and most Americans that were eligible have received them all by now. Next up is the Advance Child Tax Credit which will give money for eligible families with children. Here is what you need to know.
The Advance Child Tax Credit Checks
Link: IRS Advance Child Tax Credit
In simple terms, the Advance Child Tax Credit is a program where the child tax credit that is normally $2,000 per child is now going up to $3,000 for children over 6 and $3,600 for children under 6. While families can opt to receive the full amount when they file their 2021 tax returns, half of those amounts will start being sent out soon to those who do not opt out.
This calculator shows you how much money you should expect to receive from the Advance Child Tax Credit.
When Will the Advance Child Tax Credits Go Out?
The IRS has said the these payments will start going out on/around July 15. They will be sent mostly as direct deposit for those who have this information on file with the IRS (either through their recent tax return or through the Non-Filer’s Form). The rest will be sent via checks to the address that you have on your tax return.
After that, they will go out each month around the same time through the end of the year. The remaining half can be claimed next year on your 2021 return as a typical child tax credit.
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What if You Haven’t Filed a Return?
If you were not required to file a tax return and you are eligible to receive this new credit, you can fill out this form here to make sure you receive the tax credit promptly next month.
Use this tool to report your qualifying children born before 2021 if you:
- Are not required to file a 2020 tax return, didn’t file one and don’t plan to; and
- Have a main home in the United States for more than half of the year.
Also, if you did not get the full amounts of the first and second Economic Impact Payment, you may use this tool if you:
- Are not required to file a 2020 tax return, didn’t file and don’t plan to, and
- Want to claim the 2020 Recovery Rebate Credit and get your third Economic Impact Payment.
Do not use this tool if you:
- Filed or plan to file a 2020 tax return; or
- Claimed all your dependents on a 2019 tax return, including by reporting their information in 2020 using the Non-Filers: Enter Payment Info Here tool; or
- Were married at the end of 2020 unless you use the tool with your spouse and include your spouse’s information; or
- Are a resident of a U.S. territory; or
- Do not have a main home in the United States for more than half the year and, if you are married, your spouse does not have a main home in the United States for more than half the year; or
- Do not have a qualifying child who was born before 2021 and had a Social Security number issued before May 17, 2021.
What if You Do Not Want to Receive Monthly Checks?
If you would rather get the full $3,000 or $3,600 (for children under 6) applied to your tax return when filed next year, the IRS will have a portal up soon that will allow you to opt out, as well as update any information that is out-of-date.
For more answers to your questions, check out this IRS page here.
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