2021 Child Tax Credits
IRS has implemented a change to the credits that relate to the Child Tax Credits. Those that qualify (see qualification requirements) will receive ½ of the child tax credits they are due in advance over the next 6 months (July to December). The other ½ of the child tax credits will be claimed on the 2021 tax return. It is currently unclear if that payment will be direct deposit or check. Currently, the credits are as follows:
- Age 0-5: $3,600 total eligible credit
- Age 6-17: $3,000 total eligible credit
Important information about this tax credit:
- If you believe you are NOT in need of this advancement, we’d recommend you unenroll. To unenroll please visit: https://www.irs.gov/credits-deductions/advance-child-tax-credit-payments-in-2021 (*Note that for Married Filing Joint returns, both spouses may need to complete the unenrollment process)
- These credits are an advance of credits from the 2021 tax return. Therefore, the credits will need to be paid back, either partially or in full, if certain Modified Adjusted Gross Income (AGI) thresholds are reached or exceeded.
- Income threshold/phase out starts at:
- $75,000 for individuals
- $150,000 for married filing joint
If you have any questions, please visit the Frequently Asked Questions on the IRS website.