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Advanced Child Tax Credit Payments
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 using the Non-Filers: Enter Payment Info Here tool, 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.
The IRS will use information you provided to determine if you qualify and automatically enroll you for advance payments. You do not need to take any additional action to get advance payments.
Caution. The total amount of the advance Child Tax Credit payments that you receive during 2021 is based on the IRS’s estimate of your 2021Child Tax Credit, If the total advance payment is greater than the Child Tax Credit amount you are allowed to claim on your 2021 tax return, you may have to repay the excess amount on your 2021 tax return. You may have received an excess credit due to changes in your income, marital status, or number of qualifying children.
Repayment protection safe harbor. You may not have to repay some or all of any excess advance Child Tax Credit amount if the excess payment is caused by a change in the number of qualifying children and your income is below a specified amount for your filing status.
The maximum amount of repayment protection is $2,000 for each qualifying child that the IRS took into account when estimating your advance Child Tax Credit. You qualify for the maximum amount if your modified adjusted gross income (AGI) is at or below the following amounts based on the filing status for your 2021 income tax return.
- $60,000 if you are married and filing a joint return or filing as a qualifying widow(er).
- $50,000 if you are filing as head of household.
- $40,000 if you are a single filer or married and filing a separate return.
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