The Child Tax Credit (CTC) is not a new tax credit but it has changed for 2021—more money is available and 90% of those eligible will automatically receive advance payments.
Eligibility for the CTC
- If your child/children are between the ages of 0 to 17 (Children must have a Social Security number to be eligible)
- $3,600 per child ages 0–5
- $3,000 per child ages 6–17
- To receive the full CTC taxpayers cannot make more than:
- $150,000 for married taxpayers filing a joint return and qualifying widows/widowers
- $112,500 for heads of household
- $75,000 for all other taxpayers
- After the amounts above the credit gets progressively smaller
Advanced payments start in July
The IRS is releasing half of the amounts above in advance starting on July 15, 2021.
You will receive $300 per month for each qualifying child and dependent age 0-5 ($1,800 over 6 months) or $250 per month for each qualifying child and dependent age 6-17 ($1,500 over 6 months). You will get the rest of the money when they file taxes in 2022.
How to opt-out of monthly payments
You will automatically get the CTC in monthly payments if you filed a 2019 or 2020 tax return and claimed the Child Tax Credit on the return or gave the IRS their information through the Non-Filers Tool on IRS.gov to receive the stimulus payments.
If you want to opt-out of receiving the payment monthly or update the number of children you have as dependents, you can use the IRS Portal to update their information.
Not yet filed your 2020 taxes or you are not required to file 2021 taxes
You will not automatically get the CTC in monthly payments if…
- You did not file taxes in 2020, were not required to file taxes in 2021, and did not give the IRS your information through the Stimulus Non-Filers Tool.
- You will need to use the new Non-Filers Tool
- You do not need to do this if you received any of the stimulus checks. If you received stimulus checks but need to update your information you should use the CTC IRS portal https://www.irs.gov/credits-deductions/child-tax-credit-update-portal
Tax Preparation Availability and CTC Assistance
For free tax preparation services visit our Tax Sites page for more information.
For assistance or more information regarding the CTC please contact the Mayor’s Office Financial Empowerment’s Financial Navigators.
Visit childtaxcredit.gov for more information!
If you are looking to open a safe, affordable, and non-predatory checking or savings account visit Bank On Boston.