First Payments Expected July 15th
If you have qualifying children under the age of 18, you may be able to claim a child tax credit. (You may also be able to claim a partial credit for certain other dependents who are not qualifying children.) The American Rescue Plan Act of 2021 makes substantial, temporary improvements to the child tax credit for 2021, which may increase the amount you might receive.
Most families will get the first half of the credit in advance monthly payments from July to December, unless they opt out, in which case they’ll receive the full credit in a lump sum when they file their taxes in 2022.
Paybacks are ...Well, No Fun
It's important to note that you may end up having to pay the IRS back if you receive advance payments that you did not qualify for. You might consider opting out to avoid sticker shock during tax time if any of these situations apply to you:
Your income will be greater in 2021 than it was in 2020
You split custody of one or more dependents
Your child turns 18 in the year 2021
Click HERE for more details about Biden's various Child Tax Credits and the qualification requirements. You can check your eligibility status by visiting the IRS's Child Tax Credit Eligibility Assistant. If you would like to update your information or opt out of the program, visit Child Tax Credit Update Portal.
Want to learn more? Contact us today! (913) 354-8686 | info@riseconsultingus.com
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