Learning Center

Catch the latest news and find helpful tips for your financial health & business.

IRS Unveils Online Tool to Register for Monthly Child Tax Credit Payments

Article Highlights:

  • Increased Child Tax Credit 
  • High Income Phaseout 
  • Advanced Payments 
  • Non-filer Credit Registration 
  • IRS Letters 
  • Scam Awareness 
As we noted in prior articles, Congress has made substantial changes to the child tax credit (CTC) for 2021.
  • The CTC has been increased to as much as $3,000 per child ages 6 through 17 at the end of 2021, and 
  • $3,600 per child age 5 and under at the end of 2021. 
For taxpayers who have their main homes in the United States for more than half of the tax year and bona fide residents of Puerto Rico, the CTC is fully refundable. However, it does begin to phase out for higher-income taxpayers once their modified adjusted gross income, based on their filing status, exceeds:
  • $75,000 for single filers and married persons filing separate returns. 
  • $112,500 for heads of household. 
  • $150,000 for married couples filing a joint return and qualifying widows and widowers. 
New for 2021 is a provision that allows advance payments to eligible taxpayers of one-half of the estimated 2021 CTC in monthly payments (July through December). The monthly advance payments will be estimated based on a taxpayer’s 2020 tax return, or their 2019 tax return if 2020 information is not available. All qualifying families are automatically enrolled for advanced payments. Payments will be by check or direct deposit.

The IRS, on June 15th, unveiled an online tool that allows eligible families who don't make enough income to have an income tax return-filing obligation to provide the IRS the basic information needed—name, address, and Social Security numbers—to figure and issue their Advance Child Tax Credit payments.

This tool will also be enhanced in the near future allowing taxpayers to check their eligibility for the CTC and to unenroll from advanced payments if they prefer not to receive the credit in advance.

The IRS is sending out letters – some 36 million – to those taxpayers that they believe are eligible for the advance payments. You may have already received a letter. There will be a follow-up letter that gives more personalized information as to the estimated amount of payment the taxpayer will be eligible for. Be sure to save any letters you receive from the IRS!

Watch Out for Scams - The IRS also urges everyone to be on the lookout for scams related to both the Advance Child Tax Credit payments and Economic Impact Payments. The only way to get these benefits is by either filing a tax return with the IRS or registering online through the Non-filer Sign-up tool, exclusively on IRS.gov. Any other option is a scam.

Watch out for scams using email, phone calls or texts related to the payments. Be careful and cautious: The IRS never sends unsolicited electronic communications asking anyone to open attachments or visit a non-governmental website.

If you have any questions, please give this office a call.



Share this article...

Want our best tax and accounting tips and insights delivered to your inbox?

Sign up for our newsletter.

I confirm this is a service inquiry and not an advertising message or solicitation. By clicking “Submit”, I acknowledge and agree to the creation of an account and to the and .

Let us take your tax and accounting needs off your hands today.

Social Media

Contact

Our Offices

Our expertise is widespread and we have multiple office locations to make it convenient for you to get help. You can find us at:

Nationwide Virtual Accounting & Tax - Vancouver, WA

8703 NE 97th Ct
Vancouver, Washington 98662

Nationwide Virtual Accounting & Tax - Leawood, KS

5251 West 116th Place
Suite 200
Leawood, KS 66211

Nationwide Virtual Accounting & Tax - Huntsville, AL

4100 Market Street
Suite 100
Huntsville, AL 35808

Nationwide Virtual Accounting & Tax - Birmingham, AL

1 Chase Corporate Center
Suite 400
Birmingham, AL 35244