Advocate - Child Tax Credit Changes

Child Tax Credit / Advanced Child Tax Credit Payments For 2021

Barbara Saverino

Child Tax Credit Awareness Day:  June 21, 2021

The Biden-Harris administration announced that Monday, June 21st will be Child Tax Credit Awareness Day—a day of action to get the word out far and wide on the upcoming monthly payments that will benefit nearly all families. As part of Child Tax Credit Awareness Day, the administration is encouraging elected officials, organizations that fight for children (United Ways and our partners), and faith-based

Here is a link to White House announcement.

About the Child Tax Credit/Advanced Child Tax Credit Payments for 2021
The Child Tax Credit (CTC) is a tax credit created in 1997 to help working families offset the cost of raising children. The American Rescue Plan Act, passed by Congress and signed by President Biden earlier this year, increased the amount of the CTC for 2021 to $3,600 per qualifying child under the age of 6 and $3,000 per qualifying child under the age of 18.
The American Rescue Plan Act also authorized the IRS to send eligible families periodic advance payments of their 2021 CTC. This will help put money into the pockets of hardworking parents sooner. From July through December 2021, eligible families should expect to receive advance payments totaling up to one-half of the full CTC amount for which they are eligible this year. Families will receive the remainder of their CTC when they file their 2021 tax return.  Also, as part of the American Rescue Plan, the Child Tax Credit will be fully refundable, meaning that if a family’s income tax bill is less than the amount of their Child Tax Credit, they will get a payment for the difference.
The Internal Revenue Service will make it possible for non-filers to benefit from the expanded Child Tax Credit with portals:
-  The first portal will allow eligible Americans who have a 2020 or 2019 tax return that has been processed by the IRS to provide updated information, such as a change in the number of qualifying children, a change in marital status, or a significant change in income. The portal also will allow individuals to opt out of receiving advance monthly payments altogether. Individuals who used the IRS’s non-filer EIP portal last year are deemed to have filed a 2019 tax return and will be able to access this portal.
-  The second portal will allow eligible non-filers (i.e., individuals who do not have a 2020 or 2019 tax return on file with the IRS, did not use the EIP non-filer portal, and are below the tax return filing threshold) to provide necessary information to the IRS. 

Join us in making the temporary changes to Child Tax Credit (and Earned Income Tax Credit) permanent.  Credit permanence would provide ongoing income support to struggling families and help rebuild a more equitable economy in the recovery from the COVID recession and beyond.  Click here to make your voice heard.