Child Tax Credit Updates For 2021

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:

• Filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return; or
• Given the IRS your information in 2020 to receive the Economic Impact Payment; and
• A main home in the United States for more than half the year (the 50 states and the District of Columbia) or file a joint return with a spouse who has a main home in the United States for more than half the year; and
• A qualifying child who is under age 18 at the end of 2021 and who has a valid Social Security number; and
• Made less than certain income limits.

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.