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BQ Tax & Accounting Ltd

2021 CTC Update

Contact Us (518) 234-4829

There are big changes to the Child Tax Credit for the 2021 Tax Year

  • Part of the American Rescue Plan for 2021 only

  • The Child Tax Credit is for families with children up to the age of 17, usually up to $2,000 per child, refundable up to $1,400 per child 

  • For 2021 the amounts are now up to $3,000 per child ages 6 to 17 and $3,600 for children under the age of 6

  • It is also now fully refundable and there is an option to receive funds in advance of filing a 2021 tax return

Advance Child Tax Credit Payments 

  • Payments between $250 and $300 per month, per child will be distributed July through December 2021

  • This will be reconciled when filing the 2021 personal income tax return

Click Here to View our Video about Advance Child Tax Payments on Facebook

Advance CTC Help

I don't usually need to file a tax return, but I do have a qualifying child(ren). How do I get the Advance CTC? 

Click here to use the IRS Child Tax Credit Non-filer Sign-up Tool

* If you will file a 2021 tax return do NOT use this tool, this is for non-filers only * 

I'm not sure if I am eligible for the Advance Child Tax Credit. 

Click here to use the Eligibility Assistant

I would like to update my bank account information for advance payments. 

Click here to Manage Advance Payments

I would like to stop getting advance payments. 

Click here to Manage Advance Payment

What if I get more Advance Child Tax Credit than I am entitled to?  Do I have to pay it back?

As of July 2021, the answer is "maybe." These laws are new and are evolving over time. The current guidance indicates that many taxpayers will be eligible for Repayment Protection if they receive more funds than they should have under the income thresholds outlined below.

Full Repayment Protection is anticipated to be granted to taxpayers with a main home in the US for more than half of 2021 with 2021 Adjusted Gross Income amounts lower than:

$60,000 if you are married and filing a joint return or if filing as a qualifying widow or widower

$50,000 if you are filing as head of household

$40,000 if you are a single filer or are married and filing a separate return

Partial Repayment Protection is anticipated to be granted to taxpayers with a main home in the US for more than half of 2021 with 2021 Adjusted Gross Income amounts higher than those allotted for Full Repayment Protection but lower than:

$120,000 if married and filing a joint return or if filing as a qualifying widow or widower

$100,000 if filing as head of household

$80,000 if you are a single filer or are married and filing a separate return

No Repayment Protection is anticipated to be granted to taxpayers with 2021 Adjusted Gross Income amounts higher than those listed above. At this time, IRS guidance indicates that these taxpayers will repay any amount of Advance Child Tax Credit received that they are not entitled to when the Child Tax Credit is reconciled on the 2021 personal income tax return. As Congress continues to pass and implement tax laws quickly, we may see changes to this guidance.