To help parents during the pandemic, the Child Tax Credit has been expanded under the American Rescue Plan Act. This means that many families will receive advance payments starting July 15, this opportunity is confusing and scammers are already jumping into the game with attempts to capture personal information from you.
What is the Child Tax Credit (CTC)? The CTC is available if you claim any children younger than 17. The CTC has been $2,000 per qualifying child. For 2021, the amount will increase to $3,600 for children ages 5 and under and $3,000 for children ages 6 through 17. Note, the CTC amount is based on income.
The American Rescue Act included an Advance Child Tax Credit Payments program. These early payments from the IRS are half of the estimated CTC that you may properly claim on your 2021 tax return during the 2022 filing season. If the IRS has processed your 2020 or 2019 tax return, these monthly payments will be made starting in July and through December.