IRS Set to Begin Making Advance Child Tax Credit Payment on July 15th
Taxpayers with dependent children under the age of 18 should have recently received a letter form the IRS describing the changes that were made to the Child Tax Credit under the American Rescue Plan. Under this legislation. the child tax credit for 2021 was increased from $2,000 per child under the age of 17 to $3,600 per qualifying child under 6, and $3,000 per qualifying child between the ages of 6-17. Additionally, rather than waiting to claim this full credit on your 2021 tax return, the IRS will make partial monthly payments of this credit beginning July 15th.
We recently mailed information regarding these changes to the Child Tax Credit and the related advance payments to all of our clients with dependent children under the age of 18. A copy of the letter that was sent out can be found by clicking the Download Document link below.
We are awaiting further guidance from the IRS related to the advance payment of the Child Tax Credit, including the process for opting out of the receipts of these advance payments. We will continue to provide you with updates as we receive additional information.
In the meantime, should you have any questions, please feel to give us a call!