GREENSBORO, N.C. — The countdown is on! Parents get their first Child Tax Credit Advance payment on July 15, 2021. Parents of kids 17 and younger will either get $250 or $300 per kid each month on the 15th until the end of the year, except for August, it will be the 13th since the 15th is on a weekend.
Most of the payments will be made by direct deposit, otherwise, the payment comes by mailed check.
Why are parents getting this money? Parents were due to get this money when they filed their 2021 taxes, it is a tax credit. Instead of waiting for tax time, the government is giving advance payments. You'll get about half of the tax credit this year and claim the rest next year on your taxes.
Total, parents receive either $3,600 for each child under 6 years old or $3,000 for each child 6 years old to 17 years old.
Do you have to do anything to get this? No, it's automatic, but if you are a non-tax filer, the IRS just created a tool for you to put your info in so your direct deposit or check is not delayed.
Who Should Use This Tool
Use this tool to report your qualifying children born before 2021 if you:
- Are not required to file a 2020 tax return, didn’t file one and don’t plan to; and
- Have a main home in the United States for more than half of the year.
Also, if you did not get the full amounts of the first and second Economic Impact Payment, you may use this tool if you:
- Are not required to file a 2020 tax return, didn’t file and don’t plan to, and
- Want to claim the 2020 Recovery Rebate Credit and get your third Economic Impact Payment.
Do not use this tool if you:
- Filed or plan to file a 2020 tax return; or
- Claimed all your dependents on a 2019 tax return, including by reporting their information in 2020 using the Non-Filers: Enter Payment Info Here tool; or
- Were married at the end of 2020 unless you use the tool with your spouse and include your spouse’s information; or
- Are a resident of a U.S. territory; or
- Do not have a main home in the United States for more than half the year and, if you are married, your spouse does not have a main home in the United States for more than half the year; or
- Do not have a qualifying child who was born before 2021 and had a Social Security number issued before May 17, 2021.
WHAT IF YOU WANT TO OPT OUT OF THE ADVANCE PAYMENTS?
Let's say you don't want the advance payment because you want to collect it all at tax time. You can do that, just not yet. The opt-out tool isn't available yet but the IRS says it's coming soon.