CHILD TAX CREDIT ADVANCES

TO BEGIN JULY 15, 2021

 

Taxpayers that have included Child Tax Credit (CTC) information in their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment may be eligible for ACTC. Personalized letters with monthly payment estimates will be sent out starting July 15 to qualifying families. No action is needed on their end.

• Payments are automatically issued by check or direct deposit.

• The disbursement will be up to $300/month for each qualifying child under age six.

• The amount goes up to $250/month for each qualifying child ages six to 17.

• Payments are scheduled to go out on July 15, August 13, September 15, October15, November 15 and December 15.

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How to unenroll or OPT OUT

  

The IRS recently launched two new tools to help manage the ACTC payments, the Eligibility Assistant and the Unenroll from Advance Payments portal.

 

The Eligibility Assistant determines whether your customer qualifies for the advance credit. The Unenroll portal will allow families to unenroll or opt out from the monthly payments so they can receive a lump sum when they file their tax return next year. On joint returns, both parents must unenroll.

 

Keep in mind: The automatic advance payments may reduce your customers' tax refund next season up to nearly $2000 per qualifying child.

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REEFUNDS DUE FROM THE UNEMPLOYMENT AND EXCESS ADVANCE PREMIUM TAX CREDIT CHANGES

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Any refunds due from the IRS changes regarding the Unemployment and Excess Advance Premium Tax Credit chances will be issued directly from the IRS. 

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The IRS has advised that you should not amend returns that had Unemployment Compensation or Repayment of the Advance Premium Tax Credit.

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