Important changes to the Child Tax Credit will help many families get advance payments of the credit starting this summer. The IRS will pay half the total credit amount in advance monthly payments beginning July 15. You will claim the other half when you file your 2021 income tax return. These changes apply to tax year 2021 only.
To qualify for advance Child Tax Credit payments, you — and your spouse, if you filed a joint return — must have:
Click below to listen to our podcast titled "Child Tax Credit Updates for 2021". We interview Karin Cook, CPA, owner of Calvert Tax and Bookkeeping in Kewanee, IL. We discuss the new update to the child tax credit, a brief discussion on subsidies for health insurance, as well as unemployment payments.