A quick public service announcement: The Child Tax Credit scams have already started. Remember, the IRS will not initiate contact through email or text, so do not click on any links or download anything you aren’t expecting.
Additionally, if you’d like to opt out of the advance, it may be easiest for you to set up an account with the IRS as opposed to other methods.
The IRS is sending out some 2021 child tax credit payments in advance. These will be sent from July through December of 2021, up to half of the credit in total. If you have dependent children under 18 years of age, you are potentially eligible for a 2021 child tax credit of $3,000 ($3,600 for children under 6), therefore receiving monthly installments of $250 or $300, respectively. However, this will lower your tax credit on your 2021 tax return by the amount you receive in advance. Additionally, if your situation in 2021 is different enough from what it was in 2020, you may end up having to pay some or all of this credit back when you file your 2021 tax return.
If you have questions regarding these payments, you can find many resources at the IRS website here.
We would also love to talk with you regarding any changes you’ve had, and we can provide estimates if necessary.
Heritage Accounting and Tax Services