Advanced Child Tax Credits – What are they and who gets them?
by Lynn Spencer
Beginning July 15, 2021, and continuing for the remainder of this year, the IRS will send advanced Child Tax Credits (CTC) to eligible families via direct deposit, check, or debit card. Monthly payments will be $250 per child ages 6 to 17, and $300 for children 5 and under. To qualify, married filing joint households must have modified AGI of $150,000 or less, Head of Household under $112,500 and less than $75,000 if filing alone. Higher income amounts will result in phaseouts of the credit. Past tax returns (2019 or 2020) must be filed claiming the CTC, or taxpayers can provide the IRS with the relevant information. The monthly payments will equal half of the Tax Credit. Parents can claim the second half when filing the 2021 tax return next year. Please note CTC can be taken only if the child lives with the claiming parent(s) for at least half of the year.