About:
Applies to taxable years beginning after December 31, 2020
For a child 5 years old or younger, parents/caregivers can receive up to $3,600 per child
For a child 6-17 years old, parents/caregivers can receive up to $3,000 per child
For a child 18 years old and full time college students between the ages of 19-24, parents/caregivers can receive up to $500 per child
The enhanced credit amount begins to phase out where modified adjusted gross income exceeds $150,000 in the case of a joint return or surviving spouse, $112,500 in the case of a head of household, and $75,000 in all other cases
A taxpayer with three or more qualifying children may determine the additional child tax credit using the alternative formula. The maximum amount of this is $1,400 per qualifying child
If you (or your spouse if filing jointly) lived in the United States for more than half the year, the child tax credit will be fully refundable even if you do not have earned income
A taxpayer with no qualifying children may claim a credit if the taxpayer is between the age of 19 and 65, has a principal place of abode in the United States for more than half of the taxable year, is not a specified student (for ages 19-24), and cannot be claimed as a dependent on anyone else’s return
What you should know:
The IRS is sending letters to families who may be eligible based on information they included in either their 2019 or 2020 federal income tax return or who used the Non-Filers tool on IRS.gov last year to register for an Economic Impact Payment
Families who are eligible for advance CTC payments will receive a second, personalized letter listing an estimate of their monthly payment
The IRS will issue advance CTC payments on July 15, August 13, September 15, October 15, November 15, and December 15
Throughout the summer, the IRS will be adding the Child Tax Credit Update Portal and other tools to help with the advanced CTC. This includes:
A tool that will enable families to unenroll from receiving these advance payments and instead receive the full amount of the credit when they file their 2021 return next year
An interactive CTC eligibility tool to help families determine whether they qualify for the advance CTC payments
