Advance Child Tax Credit Information
You’ve likely heard that changes have been made to the Child Tax Credit many families take advantage of on their annual tax returns. However, there’s a lot of conflicting information and it can be hard to understand. In a nutshell:
- These changes only apply to 2021 – they aren’t permanent.
- If you take advantage of the Child Care Tax Credit, you will receive half of the total credit amount in monthly payments starting July 15. (You’ll receive the 2nd half when you file your taxes.)
- You can choose to opt out of these monthly payments. (Check with your tax advisor as the additional income can actually cost you at tax time.)
- If you’re not required to file your taxes, be sure you’re registered to receive the monthly payments.
The IRS has made two tools available to simplify the process. The first is to help you manage payments, and you use it to:
- Check if you’re enrolled to receive payments
- Unenroll if you don’t want to receive advance payments
- Provide or update your bank account information for payments beginning in August (You’ll receive your July payment the same way you received your stimulus payments)
The second tool is for those who aren’t required to file an annual tax return.
The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.