06/22/2021
I have received a lot of calls and messages regarding the Child Tax Credit for 2021. To ease any confusion, the Child Tax Credit in past years has been partially NON-refundable, partially REFUNDABLE. This year (so far for 2021 ONLY), the Child Tax Credit is a FULLY REFUNDABLE credit. For children under 6, the Credit is $3,600. If you chose to take the Advanced Child Tax Credit, you will receive $300 per month starting on or around July 15, 2021 until December 15, 2021. For children 6 and older, the credit is $3,000. If you chose the Advanced Child Tax Credit, you will receive $250.00 per month starting on or around July 15, 2021 until December 15, 2021. Now, here is the confusing part: to opt out or not! In past years, the child tax credit has only been refundable up to $1,400.00. The non-refundable portion is taken against any tax liability you have. Then the difference is refunded up to $1,400.00. If you don't necessarily need it right now, I would suggest to not take it! If you are newly divorced or share custody and filing of a dependent, if you are NOT eligible to claim your dependent in 2021, you potentially will owe ALL of the ADVANCED Child Tax Credit back to the IRS! This is not a FREE credit! For your convenience, when it goes live, below is the link you can opt out, update your information, and file a 0 return if you are not eligible to file a tax return.
View your eligibility and unenroll from advance payments of the Child Tax Credit.