Child Tax Credits
The IRS is currently evaluating those families that may be eligible to receive monthly child tax credit payments under The American Rescue Plan Act (ARPA) of 2021. Eligibility is based on information provided by taxpayers on their 2020 return, if it has been filed. If not yet filed, the payment will be based on the taxpayer's 2019 return. For individuals not required to file, it will be based on the non-filer tool on IRS.gov that should have been used to register for last year's Economic Impact Payment. Letters will be mailed to those families that are eligible for the advance credit.
The payment will be up to $300 per month for each qualifying child under six years of age, and up to $250 per month, for each qualifying child from ages six to 17. Moreover, advance child tax credit payments will be issued on July 15, August 13, September 15, October 15, November 15 and December 15, 2021.
If you have any questions regarding this and its potential impact, please contact your accountant.