The American Rescue Plan expanded the Child Tax Credit (CTC) for tax year 2021. Individuals eligible for a 2021 CTC will receive advance payments of the credit starting in July, unless they choose to decline payments through the Internal Revenue Service’s CTC Update Portal (available later this summer).
Eligible families can receive advance payments of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 and above.
Payments begin July 15 and will be sent monthly through December 15 without any further action required.
You can benefit from the credit even if you don’t have earned income or don’t owe any income taxes.
The credit includes children who turn age 17 in 2021.
Filed already?
You don’t need to take any action now if you’ve filed a 2020 tax return.
Haven’t filed yet?
File your tax return as soon as possible. For people not required to file a tax return and who didn’t file in 2019 or 2020, visit the special IRS Non-filer Sign-up Tool for more details and quickly register. You may qualify for the Child Tax Credit and Economic Impact Payments.
