Its July 15th 2021, and if you have kids under 17, the IRS may have sent you the first advance payment of the Child Tax Credit.
As a reminder, the advance payment for kids under six is $300 monthly. The advance payment for kids between 6 and 17 is $250 monthly.
BakerStarrett recommends that you keep track of the payments as you receive them. You can download the worksheet below, or stop by our office for a copy. While the IRS will likely send a letter in January 2022 recapping the payments, taxpayers should actively track the amounts received. BakerStarrett needs to know the advance payments you received in order to reconcile and correctly calculate the Child Tax Credit on your 2021 tax return.
What should I do if I did not receive a payment? Payments are being delivered by Direct Deposit, Check and Debit Card. So if you did not have a deposit into your bank account on 7/15, it is possible that the check (or debit card) is in the mail.
What should I do if the payments are lower than I expected?
There could be a couple of reasons for this:
- The IRS does not yet know about children born in 2021. The child tax credit portal will be updated later this Summer to allow taxpayers to add dependents born in 2021.
- Taxpayers with an Adjusted Gross Income under $150,000 should receive the full credit amount (under $75,000 if filing single, under $112,500 if Head of Household). If your income is higher than these amounts, the credit is reduced.