The American Rescue plan increased the maximum Child Tax Credit amount in 2021 to $3,600 per child for children under the age of 6 and to $3,000 per child for children ages 6 through 17. It’s also now an advanceable payment, and automatic payments for eligible families will start on July 15, 2021.
To help families sign up for this advanceable credit, the IRS launched several new online tools designed to help families manage and monitor these payments:
- Child Tax Credit Eligibility Assistant – allows families to answer a series of questions to quickly determine whether they qualify for the advance credit.
- Child Tax Credit Update Portal – allows families to verify their eligibility for the payments and if they choose to unenroll, or opt out, from receiving the monthly payments so they can receive a lump-sum when they file their tax return next year.
- Non-filer Sign-up Tool – helps families not normally required to file an income tax return to quickly register for the Child Tax Credit and Economic Impact Payments.
Help spread the word
The IRS urges payroll professionals, and anyone else with connections to people with children, to share this critical information about the Child Tax Credit, especially those who do not normally file an income tax return.
For the most up-to-date information on the Child Tax Credit and advance payments, visit Advance Child Tax Credit Payments in 2021.