The expanded Child Tax Credit —including monthly payments starting in July — isn’t a one-size-fits-all option. Taxpayers need to review options.
Families who are concerned about getting things right when it comes to those big checks regarding the expanded Child Tax Credit now have three online tools to consider. The rollout of monthly checks — something that’s completely new — isn’t a one-size-fits-all proposition for many families. It’s a complicated credit — and individual situations vary when it comes to wanting to receive the money early. Many taxpayers would be able to receive half of their estimated 2021 Child Tax Credit in monthly installments for the rest of this year. The other half would be available next year once you file your 2021 federal income tax return. Families do not need to do anything to start receiving a monthly payout in July — if they filed a federal income tax return for 2019 or 2020. Or if they already signed up to receive a stimulus check from the IRS by using an online non-filer tool that was available for that program. Many people may need to update their information online with the IRS — or even opt out of receiving monthly payments — based on their situations. On Tuesday, the IRS launched two tools at IRS.gov that can help some people figure out whether they’d get a payment or help those who do not want to receive monthly payments in 2021. Those tools are in addition to a tool that was launched last week for some non-filers. The Internal Revenue Service just rolled out the Child Tax Credit Eligibility Assistant. That online tool at IRS.gov allows families to answer a series of questions to find out if they might receive money soon. Eligible families will receive up to $300 per month for each qualifying child ages 5 and younger and $250 per month for children ages 6 to 17.
