Child Tax Credit 2021

The American Rescue Plan Act of 2021 (ARPA) of 2021 expands the Child Tax Credit (CTC) for the 2021 tax year only. Families who claim the CTC will receive up to $3,000 per qualifying child between the ages 6 and 17 and $3,600 per qualifying child under the age of 6 at the end of 2021. The increased amounts are reduced (phased out), for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.

Advance payments will be made, up to 50% of the CTC, regularly from July through December to eligible taxpayers. Advance payments will be estimated from 2020 tax returns (or 2019 returns in the 2020 returns are not filed).

What are your next steps?
  • If you wish to receive the advance payments this year, no action is needed, other than to file your 2020 tax return if not filed already.
  • If you do not wish to receive the advance payments this year, you can opt out of this program by using the IRS online portal system.

Taxpayers will also have the opportunity to update information about changes in their income, filing status or the number of qualifying children in the online portal system. More details on how to take these steps will be announced soon by the IRS.

IRS Website on 2021 Child Tax Credit

Child Tax Credit 2021 FAQs from Kiplinger

We’re here to help!

Contact us (888) 388-1040 to see which option is better for your income tax situation.

Last Updated: 6-2-21 at 12 pm